Florida Considers Replacing Cost-Based Payments For Nursing Homes

The Florida legislature is considering converting its Medicaid payments for nursing home services from a cost-based reimbursement to a prospective payment system (PPS). The new system would be used for all facilities for adult residents. Veterans’ nursing facilities and care for children in nursing facilities would continue to be reimbursed on a cost basis. No implementation date has been set for the new system.

The proposed PPS includes seven components, and attempts to provide fair and equitable payments for similar services. It also seeks to balance financial incentives for high-quality care with incentives for efficiency. The seven components . . .