The Nursing Home Quality Care Act of 2004 changed the way nursing homes that care for Medi-Cal patients are funded in California. Before the law was passed, nursing homes got a flat daily rate from Medi-Cal, based on the location and size of the facility. Under the law, state and federal spending on nursing homes in California grew from $3.08 billion in 2004 to $3.96 billion in 2008. This is how the money flows:
Graphic by The OC Register
Note: Nursing homes are allowed to bill the state for legal fees spent fighting abuse and neglect citations and lawsuits. They can bill for legal fees spent fighting audit findings they disagree with.
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