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<classification authority="sudocs">GA 1.13:T-HEHS-00-192</classification>
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 <subject>Patient care services</subject>
 <subject>Nursing homes</subject>
 <subject>Health care cost control</subject>
 <subject>Health care programs</subject>
 <subject>Medical services rates</subject>
 <subject>Bankruptcy</subject>
 <subject>Skilled nursing facilities</subject>
 <subject>Health services administration</subject>
 <identifier>Medicare Program</identifier>
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<titleInfo>
 <title>Nursing Homes: Aggregate Medicare Payments Are Adequate</title>
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<abstract>Pursuant to a congressional request, GAO discussed the causes of the
bankruptcies of large corporations owning nursing homes and the
implications for nursing home residents, focusing on: (1) the adequacy
of Medicare&apos;s payment rates for skilled nursing services furnished in
nursing homes; (2) the relationship between the changes wrought by the
Balanced Budget Act and recent nursing home bankruptcies; and (3) what
exists to protect patients.&lt;p/&gt;GAO noted that: (1) aggregate Medicare payments for covered nursing home
services likely cover the cost of care needed by beneficiaries, although
some refinements to the payment system are needed; (2) Medicare policy
changes have required many nursing homes to adjust their operations; (3)
the adjustments have been particularly disruptive for homes that took
advantage of Medicare&apos;s previous payment policies to finance inefficient
and unnecessary care delivery and for those companies that invested
heavily in the provision of ancillary services (such as rehabilitation
therapies) to nursing homes; (4) the problems experienced by some
providers of nursing home and ancillary services are therefore the
result of business decisions made during a period when Medicare
exercised too little control over its payments; (5) filing for
bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code
allows these providers time to restructure their debts and streamline
their operations while continuing to care for their nursing home
residents; and (6) should any of these providers not emerge from
bankruptcy, however, the nursing homes will be sold or the residents may
have to find alternative care arrangements.</abstract>
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<identifier type="preferred citation">GAO/T-HEHS-00-192</identifier>
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<note>Testimony</note>
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 <searchTitle>GAO/T-HEHS-00-192; Nursing Homes: Aggregate Medicare Payments Are Adequate;
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<subject>
 <topic>Patient care services</topic>
 <topic>Nursing homes</topic>
 <topic>Health care cost control</topic>
 <topic>Health care programs</topic>
 <topic>Medical services rates</topic>
 <topic>Bankruptcy</topic>
 <topic>Skilled nursing facilities</topic>
 <topic>Health services administration</topic>
 <topic>Medicare Program</topic>
 <topic>Medicaid Program</topic>
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