Long-Term Care

Nursing home value-based purchasing demonstration begins in July

Contemporary Long-Term Care Weekly, April 9, 2009

CMS plans to test whether financial incentives can encourage nursing facilities to make quality improvements without costing the Medicare program more money overall during a nursing home value-based purchasing demonstration set to begin in July.

Nursing facilities in Arizona, New York, Mississippi, and Wisconsin are eligible to participate in the three-year demonstration, which aims to give incentive payments to nursing homes that perform well or show significant improvements in four selected measures, CMS officials said at a Special Open Door Forum Monday. The performance measures are nurse staffing, avoidable hospitalizations, selected MDS-based quality measures, and state survey results.

CMS will select about 100 nursing homes that apply to participate in the demonstration from each demonstration state. Facilities will be divided randomly between the demonstration group and the control group, whose members are not eligible to receive incentive payments. Nursing facilities that wish to participate in the demonstration must submit an application by May 1. Providers can download a program application or view the slides from the Open Door Forum at the CMS Web site.

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