This article "Texas Nursing Homes Brace for Medical Cuts," by Ben Philpott, goes into detail about the Texas House and Senate budget proposal. Ben mentions that the proposal is said to cut 10% of the rate the state pays medical providers, but with the Medicaid portion lost by stimulus money, that number is around 33%. He also gets at the point that most Nursing Homes do not have customers that can pay for insurance, most are covered by Medicaid.
It is discussed that this imbalance in the Medicaid cash flow with cause many families to resort on taking care of the elders. Many families will not be able to do this and it is crucial to the local economy as well. Ben gives an example that if Avalon Place goes under, roughly 2 million dollars in payroll will weed out of the local economy. To a small and rural area, 2 million dollars is a crucial influx to the economy. Overall, budget cuts are going to be a burden on certain areas of Texas.
I think this article is worth reading because budget cuts are a big issue concerning politics. Placing names on where those budgets are going to be made will spark criticism. The topic of cutting money given to medical providers will anger many people. Some believe that education should not be taking hits, where as Texas k-12 education is needing some improvements. Either way a person looks at it, I think that no organization is not going to like "budget cutting." Some are going to take the heat, no way around it.
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