Publicly traded companies that operate facilities in multiple states show “record revenues” and “operating profits that exceeded expectations.” One company’s revenues spiked 62% over the same quarter last year while another company squeezed out an additional $2.26 per resident day over fourth quarter 2011 Medicare rates.
“Nursing home owners are obviously ‘coping’ from last year’s Medicare adjustments through progressive acquisition strategies and imaginative cost mitigation techniques,” said Lee. “What’s also bolstering their profitability is a stronger Medicaid reimbursement rate, growing two percent over the past year.”
But industry lobbyists claim that “continued Medicaid rate cuts have created a dire situation” when it comes to paying for nursing home care.
These earning reports show otherwise. What has become critical is that substandard care continues to be dolled out in far too many nursing homes, according to Families for Better Care.