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

Large hepatitis outbreak reaches 47 cases, podiatry company denies ManorCare's charges

The number of people infected in an infamous North Dakota Hepatitis C outbreak has risen, state health officials say.

National Quality Forum supports quality measures in bill to standardize post-acute assessments

National Quality Forum supports quality measures in bill ...

The National Quality Forum has come out in strong support of a proposed standardized quality measures, such as skin integrity, across different types of post-acute care settings. Uniform assessments are ...

CMS changes mind on hospice drugs

The Centers for Medicaid & Medicare Services has revised guidance on authorization of hospice drugs for those under Medicare Advantage and Part D plans, according to a new memo.