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AHCA Offers Solutions on Post-Acute Care Reform  
AHCA Offers Solutions on Post-Acute Care Reform
Association submits comments to Congressional Committees; outlines positions on key issues



Washington, DC
The American Health Care Association (AHCA) today issued its response to a June 19, 2013, letter sent by the Senate Finance Committee and the House Ways and Means Committee requesting information and ideas on the types of long term and post-acute care (PAC) reforms that will assist in advancing quality care and payment systems. 
“We have policy solutions that create incentives for providers that can not only contain costs, but also improve quality of care,” said Mark Parkinson, President and CEO of the American Health Care Association. “We recognize the importance of these services for the people and families we serve, as well as the importance of identifying efficiencies to address Medicaid budgetary pressures.”  
The Association encouraged incentivizing improvement by connecting payment with quality outcomes, specifically support of site neutral payment reform so that payments may be focused on patients, not settings. AHCA further outlined its thoughts surrounding emerging   proposals such as value-based purchasing and bundled payments for services.  Yet the Association cautioned in its response for Federal agencies and Congress to gather more information on the initiatives and their impact before fully implementing any major programs.  
AHCA also warned against further reductions to Medicare bad debt reimbursement because the use of post-acute services is increasing with the aging population, and the options for providers to look to states for bad debt reimbursement are dwindling. Finally, beneficiaries do not have as easy access to third-party insurance alternatives as in days past.  
The Association outlined its legislative proposal to reduce hospital readmissions from SNFs that guarantees $2 billion in savings to the Medicare program over the 10-year budget window. AHCA also reiterated that the actual average skilled nursing facility (SNF) Medicare margin is close to 10 percent, and the average total SNF operating margin is calculated to be between 1 to 3 percent.  
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The American Health Care Association and National Center for Assisted Living (AHCA/NCAL) represents more than 13,700 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 or