Seniors Housing Weekly Market Update

March 22, 2011

60 Seconds With Steve Monroe 
 

March 22, 2011. The Office of the Inspector General has been raising some issues regarding Medicare reimbursement to skilled nursing companies and the increase in the level of high acuity rehab billing. Apparently, private skilled nursing chains have about double the proportion of the highest RUG category billing as do the not-for-profit and government-owned facilities. But has the OIG looked into what the private companies have invested in upgrading their Medicare units so that they can effectively treat the highest acuity patients, and at a cheaper cost than acute care hospitals or inpatient rehab hospitals? Probably not. Click here to comment

 

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Non-profit v. For-profit

I couldn't agree more with the direction of the commentary from Steve. Many not-for-profits focus on Medicaid patients because they feel it it their mission to serve them. Medicare is not a focus for many of them. That, in and of itself, is certainly a cause for the discrepancy. Take into account the amount of money that for-profits spend on physical plant upgrades to draw Medicare patients and it seems only natural that they would have a higher acuity.

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