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Ohio Health Care Association

Survey Shows Tax Increase Forcing Ohio Skilled Nursing Facilities to Make Cuts

Published in Health Insurance Week, January 3rd, 2010

Skilled nursing facilities (SNFs) in Ohio are making major changes in operations and services in order to deal with a 92 percent increase in the state-imposed Medicaid bed tax (franchise permit fee) from $6.25 to $12.01 per bed per day, scheduled for December 15. The increase means that the average facility will pay an additional $17,520 to the state each month, or $210,240 per year, for a total tax of $438,365 yearly.

Nearly 96 percent of skilled nursing facilities responding to a survey released indicate that they believe the tariff will have a negative impact on their ability to provide quality long-term care services. The providers are cancelling raises, trimming...

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