New Payment Model by CMS Pushes for more Treatment in Long-Stay Nursing Facilities

Screen Shot 2015-08-27 at 4.37.03 PMThe Centers for Medicare & Medicaid Services (CMS) announced today a new initiative to reduce avoidable hospitalizations among long-stay nursing facility residents. This announcement, about the new payment model, is part of an ongoing focus to improve quality of care in post-acute and long-term care settings.

“CMS is announcing a new funding opportunity that will…test whether a new payment model for nursing facilities and practitioners will further reduce avoidable hospitalizations, lower combined Medicare and Medicaid spending, and improve the quality of care…Improving the capacity of nursing facilities to treat medical conditions, as effectively as possible on-site, has the potential to improve the residents’ care experience, at lower cost than a hospital admission.”

To read detailed background on this initiative, as well an evaluation of this new payment model, access the CMS fact sheet posted on Aug. 27, 2015.