Question

Increased emphasis on which of the following by both Medicare and Medicaid have also provided a strong incentive for hospitals and nursing homes to either merge or establish affiliation.

Direct payments

Bundled payments

Prospective payments

Retrospective payments

Answer 1

nursing homes are now becoming continuing care retirement communities(CCRC) and providing continuity of care from independent living to supportive living and quality of care. CCRC 's are capable to compete because of its strong economy provided by its continuum of care and influence to the community. However, hospitals are less stable in their revenue and trying to establish skilled care units to compete with nursing homes. Thus, Medicare and Medicaid provide bundle payment to either merge or establish affiliation program.

• Bundle payment