Nursing home stocks rally in wake of Medicare reduction proposal

Share this article:
Nursing home stocks rally in wake of Medicare reduction proposal
Nursing home stocks rally in wake of Medicare reduction proposal
Nursing home operators may be lamenting the government's proposed Medicare payment cuts, but the stock market has reacted differently. Share prices of several publicly traded long-term care chains spiked Monday, according to a recent market analysis.

Shares of Kindred Healthcare Inc. rose 6.2%, while Skilled Healthcare Group Inc.'s stock jumped 9.5%, and Sun Healthcare Group Inc. shares soared 11.5%, The Wall Street Journal reported. News of the $390 million in cuts appeared to come as a relief to investors. Many analysts had been predicting a larger reimbursement cut, the Journal said.

The Centers for Medicare & Medicaid Services proposed on Friday trimming Medicare payments to skilled nursing facilities by 3.3% in FY 2010-a $1.050 billion "adjustment." Although CMS said the cuts would be largely offset by a 2.1% market—basket increase (or $660 million), providers still rallied against the proposal.
Share this article:
close

Next Article in News

More in News

A small team of workers responds best in emergencies, expert says

A small team of workers responds best in ...

Long-term care providers should consider a "flat" crisis management approach that relies on a core group of staff members, experts advised Wednesday at the LeadingAge annual conference.

Nursing homes have better pain and catheter management if leaders have more ...

Nursing homes led by administrators and directors of nursing with higher levels of education and certification have better outcomes on some key quality measures, according to recently published findings.

Court green-lights charges that a healthcare network underused observation stays

A whistleblower can continue to pursue charges that a Nevada healthcare network routinely admitted people as hospital inpatients when they should have been placed in observation status, a federal appeals court recently ruled.