State Losing Medicaid Funding For Mental Health Facility

LEXINGTON, Ky. (AP) - Kentucky officials said the federal
government is cutting funding for the Oakwood center for mentally
disabled people in Somerset.

The Cabinet for Health and Family Services announced the loss of
Medicaid dollars on Thursday, saying it will end May 15.

Federal funds now pay all but about $19 million of the $78
million annual budget of the Bluegrass Communities at Oakwood.

Cabinet general counsel Kerry Harvey said Oakwood is likely to
transfer some of its 224 residents to other facilities, but most
will remain at Oakwood, where the state must now pick up all

Regulators have cited Oakwood in recent years in a series of
problems, including abuse and neglect of residents.

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