Medicaid spends $11 billion on nonprofit nursing homes, study finds

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Nonprofit nursing homes received an estimated $11 billion from Medicaid in fiscal year 2004, according to a study released by the Nelson A. Rockefeller Institute of Government.

As a whole, nonprofit organizations received an estimated $85 billion to $105 billion in Medicaid funding that year. Precise funding amounts are difficult to determine because no single database exists to track such funding, the study said. Spending has increased by some 300% over the past 10 years on small, community-based healthcare providers, the study found.

Nonprofit providers have come under recent scrutiny as lawmakers and the courts are honing in on tax-exempt status rules. Tax-exempt nursing facilities comprised 20.9% of 16,598 facilities in 2002.

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