How Does Medicaid Reimbursement Impact Nursing Home Quality? The Effects of Small Anticipatory Changes

September 1, 2016


  • Robert A. Applebaum

In 2006, Ohio changed its Medicaid reimbursement methodology for nursing homes (NHs) to promote more efficient staffing levels. This study examines the impacts of this policy change on quality. We examine resident outcomes constructed from the Minimum Data Set, deficiency citations, staffing levels, and satisfaction scores for residents and families as measures of quality. Nursing homes in the group receiving increased reimbursement showed an increase in nursing and nursing aide staffing levels. NHs in the group receiving a reduction in reimbursement did lower staffing levels. None of the nonstaffing quality outcomes were impacted by changes in Medicaid reimbursement. Increased Medicaid reimbursement was found to increase staffing levels, but it had a limited effect, at least in the short run, on an array of nonstaffing quality outcomes.

Health Services Research. doi: 10.1111/1475-6773.12553

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  • Home and Community Based Services
  • Long-Term Care Policy and Financing