Nursing homes will receive a 2.8% Medicare payment increase, or a total of about $440 million, in fiscal 2005, the CMS announced. The agency based its 2005 nursing home payments on anticipated patient needs, adjusted for local labor costs. Although the CMS is working toward a payment formula that would reflect patients' clinical characteristics and the anticipated resources needed for treatment, the agency said it did not have sufficient data to use the formula for fiscal 2005. As a result, nursing homes will continue to receive temporary add-on payments, estimated at $1 billion next year. -- by Tony Fong
CMS announces 2005 nursing home rates
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