Avalere: SNFs facing $65 billion in losses

Share this article:
Dan Mendelson, CEO of Avalere Health
Dan Mendelson, CEO of Avalere Health
A 1.8% increase in Medicare payments to skilled nursing providers that starts next month will essentially be negated by losses expected from sequestration and the enactment of fresh “bad debt” provisions, according to a new Avalere Health analysis.

Nursing homes are facing the prospect of $65 billion less in Medicare funding over the next 10 years, Avalere researchers said.

“The SNF sector will become unsustainable” if subjected to more government funding reductions, warned Alan G. Rosenbloom, president of the Alliance for Quality Nursing Home Care, which sponsored the study. He called upcoming reductions “staggering.”

“Sequestration and the reduction in reimbursement for bad debt, scheduled to take effect next year, are [just] the latest in a series of legislative and regulatory cuts in Medicare payments to SNFs,” explained Avalere Health CEO Dan Mendelson.

The Avalere study factored in regulatory changes and restrictive Congressional actions. It is the first state-by-state examination of the cuts, officials said.
Share this article:
close

Next Article in News

More in News

Septicemia, urinary tract infections rank high on latest list of hospital readmissions causes

Septicemia, urinary tract infections rank high on latest ...

Two infectious conditions common in long-term care settings — septicemia and urinary tract infections — were among the top causes of hospital readmissions for Medicare beneficiaries in 2011, according to ...

PharMerica to pay $200,000 settlement over federal charges of unsafe dispensing practices

Long-term care pharmacy company PharMerica has agreed to pay about $213,000 to settle charges that it dispensed medications without prescriptions and committed other breaches of the Controlled Substances Act, federal authorities announced Wednesday.

Shortchanging the Older Americans Act has led to unnecessary nursing home placements, ...

Chronic underfunding of the Older Americans Act is leading to unnecessary long-term care facility admissions, Sen. Bernard Sanders (I-VT) and 26 of his Democratic colleagues in the Senate said in a recent letter to Appropriations Committee leaders.