Obama opens the door for drastic new Medicare, Medicaid cuts for nursing homes

Nursinghome operators are praising President Obama’s proposed 2010 budgetfor provisions that would help educate and train nurses. But theyfear that other parts, including those that call for “bundling”of some Medicare funding for post-acute care, will be harmful. Obamasaid the goal of bundled payments is to lower hospital readmissionrates.

Uponcloser objective examination, we believe this measure may havenegative, unintended consequences on our patients, our front linecare staff, and the long-term care sector itself,” said BruceYarwood, CEO of the American Health Care Association, the largestnursing home association in the United States. “Much important workremains to be done.”

LarryMinnix, the CEO of the American Association of Homes and Services forthe Aging, highlighted another part of the budget: a proposal toallocate$1 billion “to capitalize and launch the Affordable Housing TrustFund to develop, rehabilitate and preserve affordable housing andincreased funding for the project-based rental assistance program topreserve 1.3 million affordable rental units will help moderateincome elders find and keep a place to call home.”

Bothleaders said late last week that many aspects of the immense budgetdocument still needed to be clarified.

Thelatest Medicare and Medicaid developments, including the most vitalupcoming issues for providers, will be discussed at a McKnight’swebcast March 26. The session begins at 1 p.m. (Eastern) and is free– with the added bonus of a free continuing education credit forthose who apply for it. To register, go to www.mcknights.com/expo.