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Will Steep Reimbursement Cuts To Nursing Homes Jeporadize Patient Care?

 Steep Reimbursement Cuts To Nursing Homes The nursing home industry is set to become a little less profitable for nursing home operators as the government seeks to trim reimbursement rates by approximately 11%.  Set to take place next year, the proposed reductions cut out a huge billing opportunity that presently allows nursing homes to seek reimbursement for intensive treatments without actually proving the elevated level of care.

In the article reported in Bloomberg.com, the proposed cuts to funding from Medicare, nursing homes will be required to detail more of the treatments they provide to patients.

The closure of the billing bonanza will save taxpayers an estimated $3.87 billion in payments made to nursing homes. 

Tough times for the nursing home industry?

Shortly after the new reimbursement provisions were announced, nursing home giants Skilled Healthcare Group Inc. (SKH) and Kindred Healthcare (KND) were down 16% and 14% respectively.

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