Dear Administrator - Quality and Improvement Grant

July 28, 2006

Dear Administrator:

Chapter 1 of the Laws of 2002, which added section 2808-d of the Public Health Law, and Chapter 686 of the Laws of 2003 and Chapter 161 of the Laws of 2005, which amended this section, provide for payments to certain residential health care facilities (RHCFs) for the nursing home quality improvement demonstration program grant awards for the period July 1, 2005 through June 30, 2007. Pursuant to this subdivision, non-public RHCFs shall receive these payments as a reimbursable cost add-on to their rate.

The enclosed rates, for the period July 1, 2005 through December 31, 2006, include adjustments to reimburse you for the amount awarded to your facility for this period. These awards were distributed on the same proportional basis as the most recent available distribution authorized through the Nursing Home Quality Improvement Demonstration Program.

Pursuant to this legislation, after December 31, 2004, awardees may use the funds received for any of the following purposes, without restriction: 1) an increase in direct care staff, 2) increased training and education of direct care staff, 3) efforts to decrease staff turn-over and, 4) any other efforts related to the recruitment and retention of direct care staff that will effect the quality of care at such facility.

The attached schedule shows the detail of the calculation of the 7/1/05 and 1/1/06 Nursing Home Quality Improvement Award per diems. This adjustment is included on Schedule VII of the rate sheets as a Miscellaneous C adjustment. The rates containing the Nursing Home Quality Improvement add-on for 2005 and 2006 have been forwarded to the Office Of Medicaid Management for payment. If you have any questions regarding this calculation, please contact Dena Bannan of the Bureau of Long Term Care Reimbursement at (518) 473-9213.

Sincerely,

Mark H. Van Guysling
Assistant Director
Division of Health Care Financing

Enclosure