Health and Family Services Cabinet
CMS Rules in Oakwood Appeal
State Officials Working to Determine Appeal Decision's Impact
The federal Centers for Medicare and Medicaid Services (CMS) has officially notified the Cabinet for Health and Family Services (CHFS) that an administrative law judge ruled that CMS had the authority to terminate Oakwood’s participation in the federal Medicaid program in September 2005.
CHFS plans to appeal the ruling and is exploring all available options. CHFS also is considering submitting an application to CMS for Oakwood to be recertified in the Medicaid program, which would prompt a detailed assessment of the facility, including a full on-site survey.
“We are working diligently to determine the effect of this decision on the future of Oakwood,” said CHFS Secretary Janie Miller. “As we pursue all our options to preserve Oakwood's federal funding, we will continue to make plans to ensure that care of the residents is not negatively impacted.”
The ruling upheld the CMS determination that Oakwood was not in compliance with conditions for participation in the Medicaid program. The CMS determination was based on conditions that existed at Oakwood at that time.
Progress has been made in regard to the safety and welfare of Oakwood residents since CHFS contracted with the Bluegrass Mental Health-Mental Retardation Board to take over the facility in November 2006. The Bluegrass Communities at Oakwood in Somerset currently serves 224 people with mental retardation, 24 of whom are currently in the process of being transitioned to community placements.