January Governor David Paterson State Capitol Albany NY Dear

							                                              January, 2009

Governor David Paterson
State Capitol
Albany, NY 12224

Dear Governor Paterson,

On behalf of The Friendly Home, a non-profit nursing home in Rochester, I strongly urge you
not to cut much needed resources from already under-funded long term care providers as you
propose in the 2009-2010 state budget. If enacted, the cuts will result in a Medicaid revenue loss
to The Friendly Home of over $714,000.

The Friendly Home’s Medicaid rates have been grossly insufficient for many years, reimbursing
about 70 cents for each dollar of cost to provide care. This disparity is due to an antiquated
payment formula based on a 1983 base year. Three years ago the legislature recognized the
magnitude of the Medicaid reimbursement problems statewide and made a commitment to rebase
to 2002. I hope the much needed base year update and payment phase-in do not become a broken
promise. The regional pricing system you propose alone reduces The Friendly Home’s annual
Medicaid payments by over $300,000.

I understand that Medicaid-funded programs are expensive and must be controlled. Doing so by
reducing the ability of nursing homes to care for the frail elderly and the disabled isn’t right. The
Friendly Home has worked to become more efficient by diversifying programs, enhancing
Medicare revenue, embracing technology, and maximizing staff productivity while providing
quality care. I encourage you to focus on, among other things, the generous level of all Medicaid
benefits available to all New York residents, not just the frail elderly.

The Friendly Home and nursing homes across the state cannot meet your, our and consumers’
quality expectations with such deep revenue reductions. I ask you, please do not walk away from
the commitment made by our legislature in 2006. The frail elderly, their families and the
thousands of employees who care for them will suffer if your proposed nursing home Medicaid
payment reductions are adopted.

Sincerely,

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