Medicare cuts could cost SNFs close to $800 million

Skilled nursing facilities are gearing up to absorb nearly $800 million in Medicare cuts in 2014, according to a new analysis from Avalere Health and the Alliance for Quality Nursing Home Care.

Mandated reductions under the Budget Control Act are estimated to affect SNF care with California, Florida, Texas, New York, Illinois, New Jersey, Ohio, Pennsylvania, Michigan and Massachusetts suffering the largest Medicare cuts. Nationally, the analysis finds the Medicare cuts will total $782.3 million, which would go into effect in January 2013.

Noting U.S. SNFs will absorb at least $3 billion in new cuts over the FY 2012-21 budget window resulting from so called “bad debt” provisions in the recently passed Middle Class Tax Relief and Job Creation Act of 2012, Alan G. Rosenbloom, president of Alliance said the sector is already slated to absorb $48 billion in funding cuts between FY 2012-21.

“Demographic reality and the rapidly evolving nature of our patient population requires a more rational, cost-effective Medicare post-acute payment system—not more irrational Medicare cuts that jeopardize ongoing access to quality care,” said Rosenboom, in a statement.