http://www.modernhealthcare.com/article ... /160639991Since the creation of Medicaid in 1965, the program has excluded payment for institutions of mental disease (IMDs) for beneficiaries 21 and over. Most residential treatment facilities for mental health and substance-use disorders with more than 16 beds did not qualify for Medicaid reimbursement. At the time Medicaid was created, states were responsible for the care of people with severe mental illness and the federal government did not want to supplant the state funding with federal Medicaid dollars. In April, the CMS finalized a policy allowing Medicaid managed-care plans to pay the facilities for short-term stays lasting 15 or fewer days in a month.
http://www.modernhealthcare.com/article ... /150619905In all, 11 states and the District of Columbia participated in the program, which kicked off in July 2012 and was supposed to end December 2015. However, state officials notified participating hospitals in April that the program was over because the funding was exhausted early. “Suddenly the funds just stopped, and we might not even get paid for some of the services we've already provided,” said Dr. Azfar Malik, CEO of CenterPointe Hospital, a psychiatric facility in St. Charles, Mo. Providers suspect the money ran out because millions more people enrolled in Medicaid beginning in 2014, when many states expanded eligibility under the Affordable Care Act. A CMS spokeswoman declined to comment on why the demonstration ended early.
My .02-- good idea, but Medicaid is a lousy vehicle for this.
