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Study finds financial incentives for hospitalization

LTC Liability Monitor, December 18, 2006

Brown University researchers found that state policies unwittingly create financial incentives for nursing homes to hospitalize residents even though hospital stays can be disorienting or dangerous for residents, reported Medical News Today. Previous studies have shown that about one-third of hospital stays by nursing home residents can be prevented. This study resulted in two major findings. First, the lower the state Medicaid reimbursement rate to nursing homes, the more likely those homes were to hospitalize residents. Second, hospitalization odds were significantly higher in states that reimburse nursing homes for holding the beds of hospitalized residents. Results are published in the current online edition of Health Services Research, according to Medical News Today.

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