Situation Report | November 22, 2021
At the November Managed Care Policy and Planning meeting last week, the state Department of Health (DOH) provided initial information on the implementation of a “Long-Term Care Workforce and Value-Based Payment Readiness” program, which would utilize some of the enhanced Medicaid monies that the state is receiving under the federal American Rescue Plan legislation to address workforce issues.
Under this plan, which is subject to review and approval by the U.S. Centers for Medicare and Medicaid Services (CMS), DOH intends to channel funds to certain “eligible” Licensed Home Care Services Agencies (LHCSAs), which will be based on LHCSAs that have received a certain amount of revenues from Managed Long Term Care (MLTC) and/or Medicaid Advantage (MA) plans in 2019. DOH has identified about 250 LHCSAs statewide who meet this criteria.
The funding totals about $361 million to be distributed in the January 1 to March 31, 2022 period and another $1.1 billion for the April 1, 2022 to March 31, 2023 period (again subject to CMS approval).
The monies will have to be used by LHCSAs for one or more of the following:
- Adopting workforce retention and job satisfaction strategies.
- Developing and promoting completion of training programs in connection with local Workforce Investment Organizations (WIOs).
- Utilizing innovative technologies that assist with Value Based Payment contracting and increasing employee satisfaction.
- Developing or utilizing strategies to recruit and retain a racially and ethnically diverse and cultural competent workforce.
- Implementing strategies for effective care management and reductions in health care spending associated with effective service delivery.
- Building appropriate personal protective equipment (PPE) stockpiles from state authorized sources.
LHCSAs will be required to attest to their intended use of the funds along with the budgeted amounts; complete DOH surveys; and submit quarterly reports. MLTC and/or MA plans will receive separate payments that will have to be passed on to their eligible LHCSA partners, and will be responsible for obtaining provider attestations and spending reports and report to DOH on provider payments.
HCA is gravely concerned about this spending plan, and has many questions and concerns about the eligibility criteria, distribution methodology, selection process and absence of certified home health agencies and hospices as eligible providers, and will be bringing these items to DOH’s attention at a meeting with state officials and other provider associations this week. HCA will keep providers updated as more information becomes available.