tci Medicare Compliance & Reimbursement - 2006 Issue 2

SNFs Could Face Hard Times Without a Market Basket Update

Recommendations for 2006 PPS changes offer big payment shifts but little assistance.The Medicare Payment Advisory Commission's recommendation to freeze inflation adjustments to payment rates for skilled nursing facilities has long-term care providers steaming.A rebuke from the American Health Care Association and the Alliance for Quality Nursing Home Care coincided with a Dec. 9 MedPAC report outlining the SNF prospective payment system for 2006. A market basket update is critical to helping SNFs defray rising health care costs, the LTC organizations argue. MedPAC's recommendation has left many LTC providers fearful that the commission will continue to recommend withholding...

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