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You are Here: Home Page > Long-Term Care Medicaid Reimbursement > Dear Administrator - Health Retention and Recruitment  

Dear Administrator - Health Retention and Recruitment

May 4, 2006

Dear Administrator:

Chapter 1 of the Laws of 2002, which added subdivision 18 of section 2808, and Chapter 82 of the Laws of 2002 and Chapter 686 of the Laws of 2003 and Chapter 58 of the Laws of 2005, which amended this subdivision, provide for payments to residential health care facilities (RHCFs) for the recruitment and retention of health care workers for the period January 1, 2006 through June 30, 2007. Pursuant to this subdivision, non-public RHCFs shall receive these payments as a reimbursable cost add-on to their rate.

The enclosed rate for your facility is for the period January 1, 2006 through December 31, 2006, and includes an adjustment to reimburse you for your portion of the health recruitment and retention monies, which for non-public residential health care facilities amounts to $115,800,000. The funds were allocated proportionately based on each non-public RHCF's reported total gross salary and fringe benefit costs on exhibit H of the 1999 RHCF-4 cost report or exhibit 11 of the 1999 institutional cost report to the total reported salary and fringe benefit costs for all non-public RHCFs. The resultant amount was divided by 2004 Medicaid patient days.

Non-public and public RHCFs in operation as of the effective date of subdivision 18 of section 2808 of the Public Health Law that have not submitted 1999 RHCF-4 cost reports or 1999 institutional cost reports by November 1, 2001 but have submitted reports for cost years subsequent to 1999, had their allocation based on total gross salary and fringe benefit costs on exhibit H of the subsequently submitted RHCF-4 cost report or exhibit 11 of the subsequently submitted institutional cost report, trended downward to 1999. Non-public and public RHCFs in operation as of the effective date of subdivision 18 of section 2808 of the Public Health Law that have not submitted 1999 or subsequent RHCF-4 cost reports or institutional cost reports, had their allocation based on imputed total gross salary and fringe benefit costs reflecting the average costs in the facility's region.

Pursuant to this legislation, each RHCF is required to submit to the Department of Health a signed certification statement attesting that such funds will be used solely for the purpose of recruitment and retention of non-supervisory workers at health care facilities or any worker with direct patient care responsibility. Your facility has submitted such certification.

The attached schedule shows the detail of the calculation of the January 1, 2006 Health Recruitment and Retention per diem. The rates containing the Health Recruitment and Retention add-on for 2006 have been forwarded to the Office Of Medicaid Management for payment. If you have any questions regarding this calculation, please contact Dena Bannan of the Bureau of Long Term Care Reimbursement at (518) 473-9213.

Sincerely,

Mark H. Van Guysling
Assistant Director
Division of Health Care Financing

Enclosure