With the discovery that Medicaid underfunds nursing homes by $4.2 billion, providers are calling for an increase in pay.

From the article which originally appeared on McKnight’s:

Medicaid is underfunding state long-term care efforts by $4.2 billion this year, according to a new analysis of Medicaid financing released Wednesday by the American Health Care Association.

The funding shortfall, combined with the crippled economy and almost guaranteed state budget cuts next fiscal year, could threaten access to care, said AHCA president Bruce Yarwood. AHCA, along with several other healthcare advocates, have called on Congress to include an increase to states’ Federal Medical Assistance Percentage in any stimulus package they may create.

Hardest hit by the under funding are New York and Illinois, who came up short by $548.1 million and $379.3 million respectively. Ohio, Pennsylvania and New Jersey filled out the top five.

Click here to read the entire article.

What is your perspective?  Is this shortfall hurting levels of care?  Or could greater efficiency make up for the lack of funds?