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Home > Article Categories > Nursing Jobs > CMS to Test Cash Incentives Program in Nursing Homes

CMS to Test Cash Incentives Program in Nursing Homes

Nursing Jobs By State

A recent press release from Centers for Medicare and Medicaid Services (CMS) announced that nursing homes in four states will be asked to help test the effectiveness of cash incentives in improving the quality of care provided by nursing homes.
Nursing homes in Arizona, Mississippi, New York, and Wisconsin will be participating in a CMS-led study called the Nursing Home Value-Based Purchasing demonstration. It will determine the validity of the proposal that cash incentives will improve the quality of care and efficiency of operations in healthcare facilities.

Participating nursing homes will be scored with a system of points for quality performance on the following issues:
Nurse staffing
Avoidable hospitalizations
Resident outcomes
Scope and severity of deficiency citations received during inspections

Both nursing homes with the highest scores as well as those with the greatest improvement in their score will then be eligible for a performance payment from the state. High performance is expected to generate savings which will fund the state resource pools from which the outstanding nursing homes will be paid.
The demonstration is expected to run from July 2009 through June 2012. CMS announced it will mail an application kit to each Medicare-certified nursing home in the four states. CMS officials reported that they expect at least 100 nursing homes in each of the four states will apply to be part of the demonstration.

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