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Study on NY Based Nursing Homes Shows Suspicious Payouts from Insurers

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The number of elderly nursing home residents who are being given intensive therapy in the last weeks of their lives has climbed by 65 percent, according to a new study, a fact that is raising eyebrows about money.

These residents, according to a Bloomberg News report, are being “subjected to potentially unnecessary therapy that reaps significant financial benefits for cash-strapped facilities, a study shows.”

The proportion of nursing home residents who received “ultrahigh intensity” rehabilitation increased by 65 percent from October 2012 to April 2016, according to research published this month by the University of Rochester. Medicare defines “very high” therapy as almost nine hours per week, and “ultrahigh” therapy as more than 12 hours per week. Some residents were found to have been treated with the highest concentration of rehabilitation during their last week of life.

The study analyzed data from 647 New York-based nursing home facilities and 55,691 long-stay decedent residents, with a specific focus on those who received very high to ultrahigh rehabilitation services—including physical, occupational and speech therapy—during the last 30 days of their life. Such treatments garner the biggest payouts from insurers. The study sourced data from New York nursing homes’ Minimum Data Set assessments, which track a patient’s health status and socio-demographics, as well as the Centers for Medicare and Medicaid Services’ (CMS) Nursing Home Compare website.

The findings raise questions about financial motives, Helena Temkin-Greener, the lead author of the study and a professor at the University of Rochester Medical Center Department of Public Health Sciences, told Bloomberg. “Medicare, a federal insurance program, doles out lofty reimbursement checks to nursing homes with patients facing the most complex and time-intensive rehabilitation. Temkin-Greener said for-profit nursing homes were more than two times as likely to use high to ultrahigh intensity therapy than were nonprofit homes.

“There’s a possibility that nursing homes know a patient is approaching end of life, but the financial pressures are so high that they use these treatments so they can maximize revenue,” she said. Alternatively, “if it’s being driven by a failure to recognize that a resident is approaching end-of-life, then it calls for improving the skills of nursing home teams. If ultrahigh therapy is good for patients at end of life, why are only for-profits using it?”

“It is important for [skilled nursing facility] providers and their care teams to consider the risk-benefit of potential therapy interventions and dosage relative to the resident’s current health status,” said Daniel Ciolek, associate vice president of therapy advocacy at the American Health Care Association, which represents most of the country’s for-profit nursing homes in the story.

“Reimbursement policy should be driven by what it costs to provide high-quality care to all Medicare beneficiaries,” said Aaron Tripp, the director of long-term care policy and analytics at LeadingAge, an organization that represents more than 2,000 nonprofit nursing homes, to Bloomberg. “If someone comes into a skilled nursing home facility with high degrees of medical complexity but not in need of rehab, they shouldn’t be at a disadvantage because the system provides incentives for patients in need of high therapy.”

By: Howard M. Riell

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