“‘Big Trouble’: Medicare Advantage Rates Strain SNF Margins, Deepen Sector’s Pain,” by Amy Stulick, Skilled Nursing News
“As Medicare Advantage continues to penetrate the nursing home market, leaders say that MA plans are depressing margins amid higher costs to run operations. This might lead some operators to contemplate closing, while others will be wiser to hire staff in designated roles to help them negotiate better rates – and exclusions – for managed care contracts. … Traditional Medicare amounts to nearly $600 per resident day in revenue, while managed Medicare is paying out only $468 per day, NIC data shows.”
LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:
Nursing homes count on generous reimbursements from Medicare (for a small percentage of their patients) to balance parsimonious payments from Medicaid (for a much larger percentage of their patients). With MA in the picture, that balance is harder to achieve. More nursing home are likely to close as a consequence.
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