Nursing homes find mixed bag in Obama's proposed budget

Share this content:
Obama opens the door for drastic new Medicare, Medicaid cuts for nursing homes
Obama opens the door for drastic new Medicare, Medicaid cuts for nursing homes
Nursing home operators are praising President Obama's proposed 2010 budget for provisions that would help educate and train nurses. But they fear that other parts, including those that call for “bundling” of some Medicare funding for post-acute care, will be harmful. Obama said the goal of bundled payments is to lower hospital readmission rates.

Upon closer objective examination, we believe this measure may have negative, unintended consequences on our patients, our front line care staff, and the long-term care sector itself,” said Bruce Yarwood, CEO of the American Health Care Association, the largest nursing home association in the United States. “Much important work remains to be done.”

Larry Minnix, the CEO of the American Association of Homes and Services for the Aging, highlighted another part of the budget: a proposal to allocate $1 billion “to capitalize and launch the Affordable Housing Trust Fund to develop, rehabilitate and preserve affordable housing and increased funding for the project-based rental assistance program to preserve 1.3 million affordable rental units will help moderate income elders find and keep a place to call home.”

Both leaders said late last week that many aspects of the immense budget document still needed to be clarified.

The latest Medicare and Medicaid developments, including the most vital upcoming issues for providers, will be discussed at a McKnight's webcast March 26. The session begins at 1 p.m. (Eastern) and is free – with the added bonus of a free continuing education credit for those who apply for it. To register, go to