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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