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Advising the Congress on Medicare issues
MedPAC > Recommendations > Skilled nursing facility services (3A)

Skilled nursing facility services (3A)

February 27, 2003

Consistent with previous MedPAC recommendations, the Secretary should develop a new classification system for care in skilled nursing facilities.
Because it may take time to develop this system, the Secretary should draw on new and existing research to reallocate payments to achieve a better balance of available resources between the rehabilitation and nonrehabilitation groups.
To allow for immediate reallocation of resources, the Congress should give the Secretary the authority to:
* Remove some or all of the 6.7 percent payment add-on currently applied to the rehabilitation RUG-III groups.
* Reallocate money to the nonrehabilitation RUG-III groups to achieve a better balance of resources among all of the RUG-III groups.

Topics: Delivery system reforms and Post-acute care.