Nursing Homes May Profit From Improved Quality Scores

Improvement on reported quality measures may contribute to higher profit margins for facilities

FRIDAY, Nov. 5 (HealthDay News) -- Nursing homes that improve on publicly reported quality measures may see a return on their investment with improved revenues and higher profit margins, according to research published online Oct. 28 in Health Services Research.

Jeongyoung Park, Ph.D., of the American Board of Internal Medicine in Philadelphia, and colleagues analyzed data on 6,286 Medicare-certified nursing homes between 1999 and 2005 from Medicare Cost Reports, Minimum Data Set, and the Online Survey and Certification Reporting System. According to the authors, in 2002 the Centers for Medicare and Medicaid Services began publicly reporting on the quality of care in Medicare/Medicaid-certified nursing homes.

The researchers found that improved facilities showed increased revenues following public reporting, leading to better profit margins. This finding was mainly due to increased Medicare admissions. A similar pattern was seen for facilities that were high-scoring, though not to a statistically significant degree.

"High performance or improvement on quality measures may lead to economic rewards for providers in the presence of publicly reported quality. This is very positive for public reporting. It appears possible for providers to receive a return on investment in quality improvement even if the highest threshold of quality is not achieved. On the margin, this may motivate providers to invest in improving quality. Second, improvement on quality measures matters but the absolute level of reported quality also matters," the authors write.

Full Text (subscription or payment may be required)

Copyright © 2010 HealthDay. All rights reserved.

Powered by

jQuery UI Accordion - Default functionality

For life-long learning and continuing professional development, come to Lippincott's NursingCenter.

Nursing Jobs Plus
Featured Jobs
Recommended CE Articles

Blunt Chest Trauma
Journal of Trauma Nursing, November/December 2014
Expires: 12/31/2016 CE:2 $21.95

The School Age Child with Congenital Heart Disease
MCN, The American Journal of Maternal/Child Nursing, January/February 2015
Expires: 2/28/2017 CE:2.5 $24.95

Understanding multiple myeloma
Nursing Made Incredibly Easy!, January/February 2015
Expires: 2/28/2017 CE:2 $21.95

More CE Articles

Subscribe to Recommended CE

Recommended Nursing Articles

Comprehensive Care: Looking Beyond the Presenting Problem
Journal of Christian Nursing, January/March 2015
Free access will expire on March 2, 2015.

Pain and Alzheimer dementia: A largely unrecognized problem
Nursing Made Incredibly Easy!, January/February 2015
Free access will expire on February 16, 2015.

Glycemic control in hospitalized patients
Nursing2015 Critical Care, January 2015
Free access will expire on February 16, 2015.

More Recommended Articles

Subscribe to Recommended Articles

Evidence Based Practice Skin Care Network NursingCenter Quick Links What’s Trending Events