Question-and-Answer Session
Operator
Thank you, sir. (Operator instructions) Our first question will come from the line of Frank Morgan of Jefferies and Company. Please proceed.
Frank Morgan – Jefferies & Co.
Good morning. A couple of questions. First, just curious if you could talk a little bit about – you mentioned California and the suspension of payments there, but I was hoping you could also give us a little update on the other states where you have, the Medicaid outlook in all the other states that you operate, maybe some color there. And then also a question on the – I know on an adjusted basis you had growth in your skilled mix year-over-year. It looks like it declined sequentially and I am curious if that was just normal seasonality, what was the cause there? Thanks.
Jose Lynch
Sure. On the – it’s Jose, Frank. How are you doing? On the California budget delay, we were – the cash had stopped here relatively quickly. We are optimistic in the next two to three months we should have it completely resolved. In regards to—
Frank Morgan – Jefferies & Co.
Just other states and–
Jose Lynch
Yes, in regards to – in regards to others states on Medicaid, we are looking good in all six states. I don’t think we have negative news in any of them. California, we are – assuming the budget gets passed, we are looking potentially at right around a 4 – little bit over a 4% increase effective August 1. Texas with the RUGs conversion from TILEs to RUGS, we are expecting right around 6% based on the information we have today. New Mexico, we are expecting some increased rates from some of our CHO [ph], change of ownership. When those get processed through we should see some nice increases there; and Missouri, a $6 in July; Kansas, about a percent increase; in Nevada, about 5.5 in July. So, we really don’t have any negative news in all our Medicaid programs. We are really excited about that.
On the Skilled mix quarter-over-quarter decline, I don’t think it’s anything – we are up quarter-over-quarter from prior year, a little bit diluted, obviously, when you look with New Mexico carved out. New Mexico only runs about currently 19% for the year. We took it at right around 15% or 16%. So that diluted the skilled mix, overall sequential quarter-over-quarter. It’s not unusual for us to see summer months slowing with elective surgeries down, hospital volumes down a bit in that so we – it’s not a huge surprise to us, that drop.
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