SNFs prepare to absorb nearly $800 million in Medicare cuts

Share this article:
Alan Rosenbloom, president and CEO of The Alliance for Quality Nursing Home Care
Alan Rosenbloom, president and CEO of The Alliance for Quality Nursing Home Care

Medicare cuts scheduled to hit in January will cost skilled nursing facilities close to $800 million in fiscal year 2014, a new analysis estimates.

Under the Budget Control Act, the mandated 2% across-the-board Medicare cuts would hit skilled nursing facilities in California, Florida, Texas, New York, Illinois, New Jersey, Ohio, Pennsylvania, Michigan and Massachusetts the hardest, according to a analysis from Avalere Health and the Alliance for Quality Nursing Home Care. The cuts would total $782.3 million.

But SNFS will also have to absorb at least $3 billion over the next decade from “bad-debt” provisions, leaving the sector slated to absorb a total of $48 billion in funding losses between fiscal years 2012 and 21, the groups stated.

“Demographic reality and the rapidly evolving nature of our patient population requires a more rational, cost-effective Medicare post-acute payment system-- not more irrational Medicare cuts that jeopardize ongoing access to quality care,” Alan G. Rosenbloom, the president of the Alliance for Quality Nursing Home Care, said in a statement.

Click here for more analysis.

Share this article:

More in News

Skilled nursing facility trends contribute to improved Medicare outlook, Congressional report says

The Medicare trust fund is on track to remain solvent until 2030, trustees of the program stated in a Congressional report released Monday. This improved outlook is due in part to revised expectations about the case mix in skilled nursing facilities.

House bill would define, promote coordinated long-term care services

A bill introduced in the House of Representatives would target improved care coordination for seniors, also adding it under the Older Americans Act.

Seize the day: Tech Awards deadline is tomorrow

Seize the day: Tech Awards deadline is tomorrow

The final countdown has begun: Long-term care providers have less than 48 hours to enter the third annual McKnight's Excellence in Technology Awards. Submissions will be accepted through July 30.