Estimate of $6.35 Billion in New SNF Sequestration Cuts Spotlights Scale, Scope of Funding Reductions Facing Sector, Patients

Alliance: Returning Again and Again to Provider Cuts Untenable; Post-Acute Payment Reforms Necessary

WASHINGTON, March 14, 2012 /PRNewswire-USNewswire/ -- Commenting on new media reports that the U.S. Skilled Nursing Facility (SNF) sector will face yet more cuts of $6.35 billion as a result of the Budget Control Act's sequestration process, the Alliance for Quality Nursing Home Care warned that the sector is already slated to absorb $127 billion in Medicare reductions between FY 2012-21 (inclusive of sequestration), and that repeated provider cuts are untenable for patients, caregivers and the SNF sector itself. Instead, the long term and post-acute advocacy group said, policy makers should focus on rationalizing post-acute care payments, which will save Medicare resources.

The $6.35 billion cut to SNFs was calculated by an independent analyst and confirmed by the Congressional Budget Office (CBO), according to the reporting.

"Simply returning again and again to provider cuts is the wrong answer, and is having serious, negative consequences for patients, caregivers, and local jobs," said Alan G. Rosenbloom, President of the Alliance. "Instead, rationalizing the Medicare post-acute payment system, which will save Medicare resources, must be a congressional priority. SNFs play a key role in the post-acute care continuum, and are poised to play a still greater role if Congress acts on this front. The Alliance looks forward to playing a constructive role in developing this timely health policy discussion."

Rosenbloom said additional estimates of sequestration's impact on the SNF sector are being calculated, and that the Alliance will be commenting further about other recent cuts and the growing challenge facing patients, caregivers and the sector at-large in a new Spring 2012 "Care Context" policy brief. Produced by the Alliance with research and analytic support from Avalere Health, the policy brief will be released later this month.

The Alliance for Quality Nursing Home Care is a coalition of 12 leading post-acute and long term care organizations providing quality skilled nursing care to American seniors and disabled in approximately 1,400 facilities in 44 states nationwide.

SOURCE Alliance for Quality Nursing Home Care

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