Insights
The vendor discount dilemma
on January 8, 2015
As written in the Long-Term Living Magazine, January 8, 2015
By, David E. Schweighoefer, Partner, Health Care Practice Group
As those in the long-term care (LTC) industry understand, Medicare Part A covers care provided to nursing home residents for a specified period of time, typically the first 100 days of residence. During this time, Medicare provides a fixed per-diem rate to the facility, and this rate does not consider the actual costs of providing services to the resident. The facility also is responsible for paying for all services received by the resident, including various therapies, tests, needed medical equipment and room and meals costs. At least part of the rationale for this reimbursement structure is to incentivize the provider facility to negotiate with the vendor or supplier of services the lowest possible rate, thereby fitting its costs under the reimbursement capped rate.
Click here to read the rest of the article.
By, David E. Schweighoefer, Partner, Health Care Practice Group
As those in the long-term care (LTC) industry understand, Medicare Part A covers care provided to nursing home residents for a specified period of time, typically the first 100 days of residence. During this time, Medicare provides a fixed per-diem rate to the facility, and this rate does not consider the actual costs of providing services to the resident. The facility also is responsible for paying for all services received by the resident, including various therapies, tests, needed medical equipment and room and meals costs. At least part of the rationale for this reimbursement structure is to incentivize the provider facility to negotiate with the vendor or supplier of services the lowest possible rate, thereby fitting its costs under the reimbursement capped rate.
Click here to read the rest of the article.
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