Long-term care hospital operators benefit from CMS payment reduction phase-in

Share this article:
Two major long-term care hospital operators saw their stocks rise upon news that planned payment cuts will be phased in over time.

The Centers for Medicare & Medicaid Services said Tuesday that a planned 3.75% cut in payments to long-term care hospitals will be spread over three years, which gives operators a 1.9% increase in fiscal 2013. Long-term care hospital payments will increase by approximately $100 million, CMS said.

Kindred stock jumped from $8.30 on Tuesday to a $9.86 close on Wednesday. Skilled Healthcare Group Inc. stock also rose, closing at $7.49 Wednesday.

CMS will accept comments until June 25 and is expected to issue a final rule on fiscal 2013 payments on Aug. 1.

Share this article:

More in News

Proposed managed care rule could accelerate shift away from nursing home care, official suggests

Proposed managed care rule could accelerate shift away ...

Proposed regulations slated for early 2015 likely will affect how Medicaid managed care balances home- versus facility-based long-term care, news sources reported Wednesday.

Assisted living residents say 'homelike' setting not so important

Contrary to conventional wisdom, assisted living residents might not place a high value on how "homelike" their surroundings are, suggest findings out of St. Catherine University in St. Paul, MN.

Adjust residents' hearing aids before they listen to music, researcher advises

Nursing home residents might get more enjoyment and therapeutic value out of music if they change hearing aid settings, recently published findings suggest.