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Impact of payment reductions on nursing facilities: Payment cuts leading to nursing facility layoffs and cancellation of new jobs

March 2, 2012

Alliance for Quality Nursing Home Care/Avalere

Examines the potential effects of Medicare payment rate cuts enacted in 2011 and early 2012. Researchers surveyed nursing facility operates about the cuts. More than one-third said they expected to have to lay off employees, while more than one-third also said they expected to indefinitely postpone or cancel hiring of direct-care staff. Three-quarters, meanwhile, said they expected to change their wage policy in some way, either through wage freezes or smaller raises.

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