Three of the four units at the state’s largest facility for adults with mental retardation have been recertified for Medicaid funding, according to a statement Monday by the Cabinet for Health and Family Services.

Federal funding for all four units at Communities at Oakwood in Somerset was suspended in May 2008 after a series of Type A citations alleging abuse of patients and lack of resident safety. Since that time, the state has provided all of the annual $75 million to operate Oakwood, picking up approximately $60 million previously supplied by federal Medicaid funding.

The decision to certify three of the four units will restore between $42 million and $45 million of the $60 million in federal funding, according to cabinet secretary Janie Miller.

The cabinet contracted with Bluegrass Regional Mental Health-Mental Retardation to manage Oakwood and address deficiencies and citations lodged against the facility by the federal Centers for Medicare and Medicaid Services (CMS). But the facility failed to clear a re-certification review by CMS last September which produced deficiency findings at Unit 1 at Oakwood.

Those, according to cabinet spokeswoman Vikki Franklin, involved a lack of active treatment – treatment involving the active participation of the resident in meaningful activities as opposed to watching television – and the lack of individualized treatment plans for each resident. The cabinet and the Bluegrass MH/MR intend to submit an application for recertification of Unit 1 in the next few weeks.

But the restoration of funding for the other three units was good news, according to Gov. Steve Beshear.

“This is a tremendously significant accomplishment in our efforts to restore federal funding for the entire facility,” Beshear said. “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.”

Miller said restoring certification has been and is “an uphill battle.” She believes recertification of the fourth unit at Oakwood isn’t too far away now three have received certification.

The cabinet hasn’t received official confirmation from CMS that the three units have been recertified but has been verbally notified of the decision.

Units 2, 3 and 4 were recertified after submitting plans of correction related to the deficiencies identified during a follow-up survey on Jan. 9 of this year. Funding will be restored to Unit 2, retroactive to March 13; to Unit 3, retroactive to Feb. 5, and to Unit 4, retroactive to March 4.

“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,” Miller said.

Constructed during the administration of Gov. Louie B. Nunn (1967-1971) the facility has faced management and treatment problems for several years before the state changed management of Oakwood by contracting with the Bluegrass MH/MR Board.

Oakwood houses about 200 adult residents at the present time.

Ronnie Ellis writes for CNHI News Service and is based in Frankfort, Ky. He may be contacted by email at rellis@cnhi.com.