Oct. 1 Medicare Funding Changes Already Having an Impact

Fact: Americans are living longer than ever. That means a growing population of seniors in need of services like skilled nursing, rehabilitative care, home care and hospice.

Because the U.S. healthcare industry employs more than 14 million people every year and accounts for over 2 million dollars in annual spending, the greater need for quality senior care could mean a significant boost for our economy. But consider this: the post-acute care sector is closely tied to Medicare funding, and recently that funding saw a significant change.

As of October 1, 2011 new rates went into effect for skilled nursing facility Medicare reimbursement. Intended to reduce Medicare fraud and “better align Medicare payments with costs,” the new rates could mean an average 11.1% overall rate cut for SNFs. However, it is important to note that depending on facility case mix and location, the size of the reimbursement cut may be larger or smaller than 11.1%.

Already the changes to Medicare funding are having an effect on facilities across the country. In Nebraska, for example, even before the decision was finalized the state’s Tabitha Health Care Services eliminated roughly 30 positions, a move “attributed specifically” to the October 1 rate cut. In a recent press release from the Alliance for Quality Nursing Home Care, AQNHC President Alan Rosenbloom indicated he believes Tabitha’s decision could be a harbinger of things to come: http://www.aqnhc.org/news/156

As healthcare professionals in the senior care industry, we have a responsibility to stay informed. Keep an eye on the news, listen to what the experts have to say, and check back with HealthVoice for more updates!