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.

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