Study Examines Impact of Medicare Purchasing Program on Skilled Nursing Facilities Serving Vulnerable Populations

What happens when the government decides to reward skilled nursing facilities that perform better and penalize others that don’t do so well? The early results were not good for facilities that primarily serve vulnerable populations.

A new study led by Gerontology Institute Fellow Jennifer Gaudet Hefele looked at first-year results from the Medicare Skilled Nursing Facility Value-Based Purchasing (VBP) Program that provides bonus incentives and payment penalties to facilities based on performance. The research, recently published in Health Affairs, found facilities serving vulnerable populations got fewer bonuses and were subject to more penalties. Continue reading