- Title
- Analysis of nursing home capital reimbursement systems.
- First Author
- Boerstler, Heidi
- Date of Pub
- 1991 Spring
- Pages
- 53-60
- Volume
- 12
- Issue
- 3
- Other Authors
- Carlough, Tom; Schlenker, Robert E
- Abstract
- An increasing number of States are using a fair-rental approach for reimbursement of nursing home capital costs. In this study, two variants of the fair-rental capital-reimbursement approach are compared with the traditional cost-based approach in terms of after-tax cash flow to the investor, cost to the State, and rate of return to investor. Simulation models were developed to examine the effects of each capital-reimbursement approach both at specific points in time and over various periods of time. Results indicate that although long-term costs were similar for the three systems, both fair-rental approaches may be superior to the traditional cost-based approach in promoting and controlling industry stability and, at the same time, in providing an adequate return to investors.
- Abstract Continued
- N/A
- MeSH
- Reimbursement Mechanisms : Accounts Payable and Receivable : Capital Financing/economics : Costs and Cost Analysis : Depreciation : Health Facilities, Proprietary/economics : Investments/economics : Leasing, Property/economics : Medicaid/organization & administration : Models, Theoretical : Nursing Homes/economics : State Health Plans/economics : Support, Non-U.S. Gov't : Support, U.S. Gov't, Non-P.H.S. : United States
- NTIS Number
- PB91-201384
