tci Medicare Compliance & Reimbursement - 2003 Issue 21

Long-Term Care: MEDICAID SHORTFALLS BODE ILL FOR NURSING HOMES' BOTTOM LINES

The sunset of Medicare add-on payments last year, looming therapy caps, proposed bad-debt reimbursement changes and tight Medicaid budgets make for a stormy reimbursement forecast for long-term care facilities. Even the Centers for Medicare & Medicaid Services admits that its own policies appear to be taking a toll on the nursing home industry. In "Health Care Industry Market Update: Nursing Facilities," the agency notes that Wall Street has a generally bleak view of the industry, thanks to "uncertainties related to government payment and the rising cost of liability insurance."While the 2.9 percent Medicare payment increase slated...

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