By David Madden

TRENTON, N.J. (CBS) – County-run nursing homes across New Jersey are banding together in hopes of getting extra help to stay in business as government funding continues to be reduced.

Eleven counties still run their own nursing homes, including Camden, Gloucester, Atlantic and Cape May.

The state Association of Counties decided to set up a separate entity called County Nursing Homes of New Jersey. Executive Director John Donnadio says Medicaid subsidies have been getting cut and the worst is yet to come.

(Credit: John Donnadio)

(Executive Director John Donnadio Credit: John Donnadio)

“We’re phasing into what’s called ‘Managed Long Term Care’ at some point in 2013, probably in July. And that will reduce the Medicaid reimbursement rates, even less to our county operated nursing homes,” says Donnadio.

That could prompt some to sell to private operators, like Burlington and Cumberland Counties did recently.

The plan is to lobby on the state and federal level to ensure that those most in need of the help can still get it somewhat close to home.

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