Millions at Stake for Nursing Homes Under Value-Based Pay Switch (1)

Nursing homes in October will see their reimbursements under traditional Medicare based more on patients’ medical characteristics in a move that puts millions of dollars in payments at stake.

The new payment system is meant to stop nursing homes from inflating their bills by providing excessive therapy treatments. The shift to a value-based payment system is a significant test for fee-for-service Medicare as it moves to payment models that reward cost efficiency and improved patient outcomes rather than just the amount of care provided.

But the new system’s financial impact on providers is uncertain, and many in the industry are ...