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A Comparison of Skilled Nursing Facility Rehabilitation Treatment and Outcomes Under Medicare Managed Care and Medicare Fee-for-Service Reimbursement

^a Brown University, Center for Gerontology and Health Care Research, Providence, Rhode Island
^b University of Southern California, Andrus Gerontology Center, Los Angeles

Correspondence: Joseph J. Angelelli, PhD, Center for Gerontology and Health Care Research, Box G-H3, Brown University, Providence, RI 20912. E-mail: Joseph_Angelelli{at}brown.edu.

Vernon L. Greene, PhD

Purpose: This article compares the rehabilitation treatment and outcomes of Medicare managed care organization (MCO) and fee-for-service (FFS) patients in skilled nursing facilities (SNFs). Design and Methods: Data on 514 MCO patients and 420 FFS patients treated in four for-profit Southern California-based SNFs between June 1996 and September 1998 were analyzed with bivariate and multivariate regression models. Results: After controlling for time since onset and other sociodemographic and health status characteristics, Medicare MCO patients were found to receive significantly fewer therapy units and have significantly shorter lengths of stay in rehabilitation programs. Implications: The findings may be the result of more global differences in the trajectories of care among MCO and FFS patients treated in SNFs, yet they highlight critical issues related to the spread of Medicare managed care in nursing homes and the dynamic between MCO and FFS reimbursement systems.

Key Words: Health outcomes • Managed care • Postacute care

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