Nursing homes will now have one more reason to improve patient care--they will be paid for doing so. The Centers for Medicare & Medicaid Services (CMS) will initiate a new pay-for-performance program to inspire nursing to provide improved care to residents.

The plan formally known as,  Nursing Home Value-Based Purchasing Demonstration Project, will begin in July and run for three years.  All Medicare-certified nursing homes in Arizona, Mississippi, New York and Wisconsin are eligible to participate.  CMS anticipates at least 100 nursing homes in each state will participate in the program.

Nursing homes who elect to participate in the program will receive points based on: staffing levels, avoidable hospitalizations, resident outcomes, and deficiencies identified during inspections. Facilities that receive the highest number of points and demonstrate the most improvement will receive payments.

CMS hopes the costs associated with implementing the program will be offset by reduced payments related avoidable hospitalizations and other cost reduction measures associated with improved performance. 

Read more about this new program intended to help improve nursing home care here.

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