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Although the authorized 2000-01
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Medicaid nursing home rate increase was
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2%, the payment system actually
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delivered lower rates for many facilities.
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Approximately 20% of all homes
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experienced a rate cut, and 52% of the
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homes received an increase of 2% or
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less. The reason: Medicaid cost inflation
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(4.58%) significantly outpaced the 2%
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rate increase.
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