Nursing home industry proposes alternative to funding cuts

{mosads}Hospital readmissions within 30 days of discharge cost Medicare $17.4 billion in 2010, according to the association. A quarter of patients readmitted to the hospital within 30 days of discharge were in skilled nursing facilities for recuperative or rehabilitative services.

“That’s why AHCA has developed a plan that provides incentives for centers to reduce hospital readmissions in order to meet fiscal goals,” the trade association said in a summary of its proposal, “but also helps skilled nursing providers continue to improve quality care.”

The strategy is reminiscent of the healthcare reform debate, when the Obama administration urged the healthcare industry to offer savings on its own instead of facing arbitrary cuts. The nursing home industry says it has shared its proposal with House Ways and Means Committee staffers and that federal Medicare officials have also expressed interest.

The proposal’s aim is to prevent proposed reductions in bad debt coverage from the federal government, which would cause the nursing home industry to lose about $2 billion between 2014 and 2021. The provision helps healthcare providers make up for patients who don’t have insurance or cash to pay for out-of-pocket costs.

Under the alternative proposal, nursing homes would commit to saving the Medicare program at least $2 billion by cutting back on hospital readmissions. If they fail, skilled nursing facilities would see cuts to their Medicare rates to make up for the difference.