The Government Offers Nursing Homes A Carrot, The Stick Is Coming

Nursing homes have been pressing for more money from the state and federal governments, by far their biggest payers. Now they are close to getting it, but the extra payments may come with costly new obligations, especially related to staffing.

The federal government is about to increase Medicare payments for skilled nursing care and, at the same time, states are considering a new round of hikes in their Medicaid payments for long-term nursing home care. The price: Tough new requirements for facilities to hire more staff and work harder to keep care workers.