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Health and Family Services Cabinet
State Officials Working to Ensure Oakwood Residents’ Health, Safety

Press Release Date:  Thursday, September 22, 2005  
Contact Information:  Gwenda Bond or Vikki Franklin (502)564-6786  

Cabinet Will Appeal Termination of Oakwood’s Medicaid Funding
State Officials Working to Ensure Residents’ Health, Safety
FRANKFORT, Ky. (Sept. 21, 2005) The federal Centers for Medicare and Medicaid Services (CMS) officially notified the Cabinet for Health and Family Services (CHFS) this week that Medicaid funding to the Communities at Oakwood was terminated effective Sept. 14.

Medicaid reimbursement will continue for 30 days from the date of notice to allow time for CHFS to appeal the funding termination and make alternative placement arrangements for the facility's residents. The termination is due to allegations that Oakwood was not in compliance with conditions for participation in the federal program. Specifically, the complaint investigation identified "an immediate and serious threat to the clients' health and safety." Roughly half of the facility’s $54.1 million annual budget comes from federal Medicaid funds.

“Our most immediate concern is the health, safety and welfare of the residents at Oakwood,” said CHFS Secretary James W. Holsinger, Jr., M.D. “As we pursue an appeal of this decision, we will continue to make arrangements to ensure that care of the residents is not interrupted if federal funding is ultimately withdrawn.”

The Office of the Inspector General (OIG) delivered a Type A citation to the facility late Saturday stemming from an investigation into an allegation that a resident had been abused. CHFS has sent a high-level management team drawn from across the Cabinet to Oakwood to evaluate all administrative and other options available to ensure the health and safety of residents.

Located in Somerset, the Communities at Oakwood serves approximately 300 people with mental retardation and is operated by the Department for Mental Health and Mental Retardation Services (MHMR) within CHFS.



Last Updated 9/22/2005