Illinois Investing $700M for Nursing Home Industry

Illinois Investing $700M for Nursing Home Industry

A new law in Illinois aims to improve care for nursing home residents across the state goes into effect July 1 with multiple steps to reach its goal.

Accounting for federal matching funds, Illinois will invest more than $700 million in Medicaid funding in the nursing home industry through a combination of new revenues generated by simplifying and expanding the existing nursing home assessment tax, and by allocating additional general revenue funds.

The legislation ties new funding to accountability and transparency for nursing facilities by adopting the federal Patient Driven Payment Model (PDPM), which is designed to more accurately reflect the clinical care needs of residents and requires the disclosure of all individual nursing home ownership interests.

Additional funding will be dedicated to addressing increased costs at nursing facilities due to labor shortages and wage increases of as much as $8 per hour, depending on a worker’s role and length of service in nursing homes.