Shortchanging 850 workers will cost operator $2 million

Nursing home chain Genesis HealthCare has eliminated fewer rehab positions than originally stated since the onset of the Patient Driven Payment Model, the company disclosed last week. 

The company has shed 499 Genesis Rehab positions — not 585, as it said earlier — out of 10,000, spokeswoman Lori Mayer told McKnight’s Long-Term Care News Friday. The number is smaller since some employees filled open positions or transferred to new geographic locations, she said. Among the 499, many received the opportunity to work part-time or PRN (as needed). 

PDPM, which went into effect in October, represents a restructuring in the nursing home payment system. With value-based care being the predominant driver, facilities in many cases are steering residents toward group and concurrent therapy and away from one-on-one therapy. This has led numerous companies, such as Genesis, to cut certain staffing. 

Genesis continues “to focus on clinically appropriate interventions while striving for the best outcomes at the lowest cost,” Mayer said. 

“In fact, through our value-based initiatives, we have found that the appropriate use of group and concurrent therapy can actually be more efficacious than one-on-one therapy in many cases,” she added. “Patients will continue to receive the same amount of therapy, but those that could benefit will receive a small percentage of their therapy treatment using these cost- effective modalities.”

In November, CEO George Hager said the company expects to see a $30 million decrease in annual operating costs as a result of PDPM.