The new Medicare payment model for nursing homes took effect this week with a bang, as therapists across the nation criticized a wave of staffing reductions in the immediate wake of the October 1 start date.
Several companies implemented workforce cuts as the federal government shifted to the Patient-Driven Payment Model (PDPM), which moves incentives away from the sheer volume of therapy and toward accurately capturing residents’ individual needs.
Publicly traded skilled nursing giant Genesis HealthCare (NYSE: GEN), for instance, cut about 5% of its overall rehabilitation staff, laying off 585 employees across its national footprint. Signature HealthCARE, meanwhile, negotiated a pay cut with its therapy staff in an attempt to save jobs and prevent changes to resident care, according to a spokesperson.
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