GAO study confirms AAHSA's medicare "cliff" worries. (NH News Notes).
"We told you so" might be one reaction from the folks at the American Association of Homes and Services for the Aging (AAHSA) to a recent government report about the importance of additional Medicare funding to nursing facilities' profit margins. The General Accounting Office, Congress's investigative arm, says that not-for-profit and government-operated nursing homes had negative profit margins from Medicare in 1999, but had small profit margins a year later when Congress provided additional Medicare funding, which expired last October. These results are consistent with an AAHSA report released last fall (see December 2002 NH News Notes, p. 8).