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Nursing Home Industry Sues Pennsylvania, Demands $150M In Federal Funding

A lawsuit filed by the nursing home industry against Pennsylvania alleges more than $150 million intended to help longterm care facilities during the COVID-19 pandemic was illegally withheld by the state.

Ambler Extended Care Center, a longterm care facility in Montgomery County, PA.

Ambler Extended Care Center, a longterm care facility in Montgomery County, PA.

Photo Credit: Google Maps

The suit was filed in state court Monday by LeadingAge PA, Pennsylvania Coalition of Affiliated Healthcare & Living Communities and Pennsylvania Health Care Association -- three trade groups representing more than 900 longterm care facilities in Pennsylvania.

The suit alleges that the Wolf Administration ignored law requiring funding for longterm care facilities, many of which were already suffering due to chronic underfunding of Medicaid, LeadingAge PA President Adam Marles said.

The suit is asking the Wolf Administration for the reallocation of federal funds.

Approximately 40,000 patients in more than 1,300 longterm care facilities tested positive for COVID-19. Nearly 7,000 of those individuals died.

The funding is critical to the commonwealth's most vulnerable residents and their caregivers, who the funds were meant to support in the first place, said Zach Shamberg, president and CEO of PHCA.

"Despite our best efforts during months of negotiations, the commonwealth has refused to distribute this funding to our long-term care providers on the front lines of the COVID-19 pandemic, jeopardizing mitigation efforts and the safety of the residents in our care," he said.

"We have no doubt the Wolf Administration wants the best for Pennsylvania's long-term care residents, and the best way for us to achieve that shared goal is for the immediate distribution of these funds."

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