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Arkansas committee hears operators warn of assisted‑living closures, votes to ask DHS to re‑review Medicaid rates
Summary
Operators told the Senate Children and Youth Committee that reimbursement cuts and rising COVID and labor costs have pushed assisted‑living providers toward closure; DHS defended its rate review and the panel voted to request a new DHS review of assisted‑living reimbursement rates.
Madam Chair convened a Senate Children and Youth Committee session on assisted living and called industry witnesses to describe financial stresses facing Arkansas providers. Operators said state reimbursement cuts, combined with COVID‑related costs and higher wages, have led to closures and threatened residents’ placements.
Ed Holman, chair of the Arkansas Residential Assisted Living Association, told the committee the state has "102 assisted living facilities in the state with 7,275 beds," and that "we are, however, limited to a maximum of no more than 1,200 residents statewide at any time." Holman and other operators said the Medicaid waiver payment of $67.25 per day for care has lagged far behind providers’ cost estimates.
Operators offered specific examples: Mike Shepherd, who said he has national assisted‑living experience, testified that eight facilities have closed, affecting…
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