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ARTICLE

Date ArticleType
7/31/2017 Payment/Reimbursement
Indiana Medicaid Nursing Facility July 1, 2017 Medians Published

Myers & Stauffer released the medians that will be used to set July 1, 2017 rates.  The medians can be accessed here.  The Direct Care and Indirect Care medians increased the most, whereas the Capital and Therapy components saw decreases.   The fluctuation in the Capital component has been the subject of study by IHCA’s Payment/Reimbursement committee as the $.83-cent decrease caused concern.  Though this decrease is less than that prior quarterly medians indicated the decrease could be, where in one quarter the decrease approached $2.00, the committee continues to analyze why the Capital component is experiencing a decrease.   According to Indiana Medicaid, the decrease in the Capital component is due to a decrease in the RS Means Construction Index, which impacts the inflated historical cost of property and the Fair Rental Value allowance, and due to Changes of Ownership where after the change the property was classified as operating leases and are no longer includes in the median calculation.

As for the decrease in the Therapy Median, this median has been dropping each quarter since July 1, 2016 when RUGs IV 48 grouper was implemented.  This was an expected result due to the lower weighting of therapy services in the 48 grouper categorization systems.

Rates for July 1, 2017 are expected to be set by October of 2017.