Health and Family Services Cabinet
Federal Funding Restored to Three Oakwood Units

Press Release Date:  Monday, March 23, 2009  
Contact Information:  Media Contact: Vikki Franklin or Gwenda Bond (502) 564-6786, ext. 3429 or ext. 3325  

Federal Funding Restored to Three Oakwood Units
FRANKFORT, Ky. (March 23,  2009) – Gov. Steve Beshear today announced the Centers for Medicare and Medicaid Services (CMS) has verbally informed the state that federal funding has been restored to three of Oakwood’s four units.

CMS recertified Units #2, #3 and #4 after accepting plans of correction related to deficiencies identified during a follow-up survey on Jan. 9. Funding was restored to Unit #2 retroactive to March 13; Unit #3 retroactive to Feb. 5; and retroactive to March 4 for Unit #4.

The Cabinet for Health and Family Services (CHFS) is awaiting official word from CMS.

“This is a tremendously significant accomplishment in our efforts to restore federal funding for the entire facility,” said Gov. Beshear. “Although a few hurdles remain, I am extremely proud that Oakwood has demonstrated such dramatic progress, and three of the four facilities have now been reinstated to the Medicaid program.”

“Restoring certification is an uphill battle for any facility, but we have never lost sight of our goal of addressing the significant issues Oakwood faced at the beginning of this long road,” said CHFS Secretary Janie Miller. “We’re pleased to be in the position of achieving recertification for three of the four units, and are optimistic that the other unit is close behind.

“The Cabinet has worked hard to place Oakwood on a clear path to recertification, and I commend all the staff for their dedication and commitment. I would particularly like to thank Acting Deputy Commissioner Betsy Dunnigan (Department for Mental Health, Developmental Disabilities and Addiction Services) for her tireless efforts on behalf of the facility.”

Unit #1 did not pass the initial survey, which occurred last September. CHFS has been working with the Bluegrass Regional Mental Health-Mental Retardation Board, which manages Oakwood, to address the deficiencies cited in Unit #1. CHFS plans to resubmit an application to CMS for the unit in the next few weeks.

The state has funded Oakwood since federal funding ceased in May 2008. Oakwood’s annual budget is approximately $75 million, $60 million of which was originally anticipated to be Medicaid funds (federal and state). Recertification of Unit #2 means the restoration of around $980,000 monthly in federal funds paid to the state; approximately $700,000 per month for Unit #3; and in approximately $840,000 monthly for Unit #4.

Oakwood, the state’s largest facility for adults with mental retardation, is located in Somerset. Its current census is 201.