Washington, DC –The American Health Care Association (AHCA) today issued the following statement from President and CEO Mark Parkinson regarding MedPAC’s recommendations:
“The data released today by MedPAC validates what the skilled nursing profession has reported for months: cuts over the last five years, combined with stagnant or declining Medicaid rates, have resulted in little or no margin in the skilled nursing sector. Today, MedPAC reported an overall margin of 1.8 percent in 2012, prior to the two percent reduction included in sequestration.
"Unfortunately, MedPAC's recommendation to reduce skilled nursing payments by four percent in 2016, with additional reductions in later years, doesn't fully account for this overall margin and would threaten access to care for millions of people. In addition, the recommended reduction does not appear to adhere to the mandate in the Wyden amendment, requiring that MedPAC consider all major payment forms, including Medicaid, when making recommendations. Further cuts to skilled nursing, such as those recommended by MedPAC, would be debilitating to providers already operating on razor-thin margins.
“The skilled nursing profession welcomes new payment models, but cuts to the market basket will only thwart providers' ability to prepare and invest in these reforms."
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The American Health Care Association and National Center for Assisted Living (AHCA/NCAL) represent more than 12,000 non-profit and proprietary skilled nursing centers, assisted living communities, sub-acute centers and homes for individuals with intellectual and development disabilities. By delivering solutions for quality care, AHCA/NCAL aims to improve the lives of the millions of frail, elderly and individuals with disabilities who receive long term or post-acute care in our member facilities each day. For more information, please visit www.ahca.org or www.ncal.org.