Hospital-Based and Freestanding Skilled Nursing Facilities: Any Cause for Differential Medicare Payments?
Korbin Liu, Kirsten J. Black
Inquiry: The Journal of Health Care Organization, Provision, and Financing · 2003
doi:10.5034/inquiryjrnl_40.1.94 (opens in a new tab)
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Abstract
Differential Medicare payments for hospital-based and freestanding skilled nursing facilities (SNFs) were eliminated by the SNF prospective payment system initiated in 1998. Closures and high negative margins of hospital-based facilities have prompted consideration of the need to revisit payment adjustments for this group of SNFs. We examine case mix-related and other factors behind the cost differences between hospital-based and freestanding SNFs. Some payment adjustment, notably for nontherapy ancillary services, may be reasonable for the short term.
Abstract licence: CC BY-NC
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