Two conference committees are hashing out details of state legislation that could place a moratorium on new construction of nursing homes for two years.
Opponents of the move said it’s going to cost Indiana jobs and violate the free market. Supporters said the moratorium would help ensure quality care for Medicaid patients, who have a much lower reimbursement rate for care than Medicare or private pay patients.
Kathy Hershberger, long term care ombudsman with the state for the South Bend region, said she’s heard concerns from administrators of some facilities that if Medicaid to non-Medicaid ratios keep growing, they might have to close because their operations simply can’t afford to stay open.
“It is a concern by facilities that are older that new Medicare or private pay patients might choose the newer construction,” Hershberger said by phone Wednesday. “It’s not the concern of individuals necessarily leaving a facility, but more of a concern of folks coming into the system initially for short-term rehab or private payers.”
The moratorium would allow new construction only if a specific county was at or above 90 percent capacity for its comprehensive care facilities or if the construction was replacing existing skilled care bedspace with no net gain.
All construction in development before June 30 could continue, under the proposals.
According to an Indianapolis Star report on Feb. 10, Carmel-based Mainstreet Property Group — which has one recently opened facility in Mishawaka and one under construction on Indiana 933 — announced 24 new Indiana facilities in early February but will take the projects elsewhere if they can’t be built, said the group’s chairman Zeke Turner.
Turner’s father, Republican Indiana House Speaker Pro Tem Eric Turner, co-founded the group.
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