CMS boosts 2005 nursing home Medicare rates
Nursing homes can expect a 2.8% Medicare payment increase – a total of about $440 million -- in fiscal year 2005, according to the Centers for Medicare & Medicaid Services.
The increase is based on anticipated patient needs, and adjusted for local labor costs.
The CMS said its developing a payment formula that would reflect patients' clinical characteristics and anticipated treatment money. The agency does not yet have sufficient data, however, to use the formula for fiscal 2005.
Nursing homes, in addition, will continue to receive temporary add-on payments, estimated at $1 billion next year.