House appropriation committee members unanimously voted Thursday afternoon to endorse a bill that would give nursing homes back the $850,000 in state funding that was cut in September.

HB1200 restores funding that was cut after the governor made across the cuts to state agencies because of an anticipated deficit. The Department of Health and Human Services received a $3.9 million allotment cut, which led to a decrease in nursing home funding.

In October, the department agreed to delay the cut until the legislative session because facilities would stand to lose an additional $1.8 million in federal funds with the state cuts. Nursing homes also were facing a 10 percent decrease in Medicare reimbursements.

In all, nursing homes across the state were looking at an immediate loss of $7 million.

"It would be hard to absorb those cuts and not impact resident care," said Shelly Peterson, president of the North Dakota Long Term Care Association.

If the deficiency appropriation doesn't come through, nursing facilities would have a $4.14 daily rate cut. That rate is based on how much money the facilities are reimbursed per resident. That decrease in funding would amount to a $200,000 loss for the four Medcenter One nursing facilities.

"This affects every resident in every nursing home," said Randy Albrecht, director of Medcenter One nursing homes. "It reduces our funding even though our services under spent. Nursing homes were under budget while the Department of Health and Human Services was over budget."

The bill takes the money out of the state's Health Care Trust Fund, which has some groups at odds with the proposal.

The trust fund money comes from enhanced federal dollars the state's two nursing homes that are run by the government receive. The program that brings the additional dollars into the state ends in 2004, by which time the trust fund will have accrued $98 million.

During the 2001 session, legislators set priorities for where that money should go. Keeping sufficient levels of funding for nursing homes in an effort to maintain the quality of care was one of the priorities, according toPeterson.

Members of the Freedom Resource Center for Independent Living disagree. Member Charles Stebbin testified in front of the appropriations committee, saying the money was intended for developing alternatives to nursing homes for disabled and elderly people.

"I am not saying I am against nursing homes," Stebbin said. "We are just trying to develop choices, and we do not have a level of funding to get there."

Peterson said because nursing homes generate the trust fund money, it should go toward maintaining the quality of care in facilities across the state.

"Everyone is trying to take those trust fund dollars and use them for the best purposes," Peterson said.

"The trust fund should be kept intact, but we should take this amount out."

(Reach reporter Sheena Dooley at 250-8225 or sheenadooley@ndonline.com.)