Skilled nursing facilities and assisted living communities work with many different payors and under different payment models. In skilled nursing, Traditional Medicare and Medicare Advantage plans cover post-acute stays following a hospitalization. Additionally, for residents that need longer-term care, private pay and state-based Medicaid programs (including Medicaid managed care plans) are the frequent payers. In assisted living communities, Medicaid Home and Community Based programs can cover a resident’s stay.
Each payor decides how to pay for the care and housing a person receives. Payment models often take into account the level of care a person needs. Newer models, like value-based payment (VBP) models, also offer payment based on outcomes achieved or measures of quality.