Nursing Home Rate Reimbursements

Legislation that changes the way nursing homes are reimbursed is making its way through the Legislature. The bill would factor in five different cost groups to determine how nursing homes are reimbursed. Those cost groups are; Care-Related Rate (nursing, food, activities, etc.), Other Operating Rate (housekeeping, utilities, etc.), External Fixed Rate (surcharges, property taxes, etc.), Property Rate (building, maintenance, etc.) and Peer Groups, which would actually modify the Care-Related Rate based on the geographic location of the facility. Supporters of the bill say the changes would reimburse facilities for the actual cost of providing care, increase the care quality, allow facilities to pay their employees better, and keep up with the rising demand of their services. The bill is now in the Finance Committee. (S.F. 273)

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