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Medicare Rate Cuts

August 31, 2011

The Federal Government announced recently they (CMS- www.cms.gov)  would be cutting reimbursement rates to Nursing Homes across the country.  The National Average of the cuts to nursing homes’ reimbursements will be 11.1%.  This is an interesting premise.  Nursing homes continue to get sicker residents and more residents with signficant rehabilitation needs year after year.  This change in the dynamic of admissions to nursing homes  stems from hospital systems discharging patients earlier because their reimbursement rates changed.   Interestingly, nursing home reimbursement rates continue to be signficantly lower across the country than hospital reimbursement rates. 

 Read http://money.usnews.com/money/blogs/the-best-life/2011/08/08/nursing-homes-squeezed-by-medicare-cuts for a balanced article these cuts.

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3 Comments
  1. Seven permalink

    Interesting piece- both the blog and the article referenced. I don’t know what the government is doing- they keep pushing these homes to give better pay but they don’t want to pay for real care.

    • Seven permalink

      sorry that should be – they keep pushing homes to give better CARE but they don’t want to pay for real care.

  2. As a Nursing Home operator, what can the SNF do to reduce the cost reductions? In addition, next October, Medicare is introducing the readmissions never event, where hospitals won’t get paid on readmissions for patients with same diagnosis the preceding admission covered. With such low margins and poor payments, how can a NH keep up quality care?

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