Steve LaForte, a principal and CFO at Cascadia Healthcare, the largest post-acute care operator in Idaho, provides an update on advocacy efforts to reverse the state’s 4 percent cut to Medicaid reimbursement rates.

Park Place Live (PPL) - What is the latest development in the fight against the Medicaid cut?

LaForte - There has been no real movement from the state, other than a soft entreaty that if we can work together to come up with other cuts and savings maybe there is a path to relief. The broader conversation will take hold when the legislative session kicks off next week.

PPL - Describe the lobbying effort against the cuts. 

LaForte - We have engaged outside lobbyists, vendor partners, and together set up a 501(c)(4) for advocacy. We are in the process of raising about $250,000 to fund that. We are also stepping up our outreach to the governor and key legislators with a full-court press ahead of the legislative session kicking off next week. And we are working with the IHCA [Idaho Health Care Association] and its lobbyists in a coordinated lockstep fashion. 

PPL - Have we seen an impact from the cuts on providers in the state? 

LaForte - Nothing material yet, but they didn’t institute the rate cuts yet [albeit they are retroactive to Sept. 1, so there will/could be eventual recoupment]. 

PPL - What is your main message to the governor and legislator on the need to rescind the cuts?

LaForte - The sector can’t survive in its current state with the cuts. Facilities will close, beds will be lost [and likely for good, given the costs to bring old facilities up to code], access loss will ensue, and hospitals will get backed up at a higher cost of care with discharges they can’t place. It’s not just us, it’s the continuum, but our piece is facing a demographic growth curve that will ensure disaster for seniors. Our analysis of our 25 Idaho facilities shows that at least 5 would not be able to survive a year under the cuts if they were one-offs [scale obviously gives us cushion]. The highest cost of the effect of the above will be in rural Idaho, which is most of the state except for the Boise MSA.

PPL - Will these advocacy efforts have an impact?

LaForte - I’m a consummate glass is half full guy, and I think that within the context that the care need is indispensable and the demographic explosion occurring it will drive us to a sustainable solution long term [no pun intended] over the next year, two years as Idaho also coincidentally or not revamps its Medicaid program to a fully managed program. I do think the path to that solution will be with pain and likely include closures and delays in reaching solutions until it’s nearly too late, which is what politicians love to do to our sector.

Questions or comments? Contact Patrick Connole at pconnole@parkplacelive.com.