In its December 5, 2019 report to Congress, the Medicare Payment Advisory Commission (MedPAC) asserted that Medicare payments to skilled nursing facilities (SNFs) are too high because relatively efficient SNFs have Medicare fee-for-service (FFS) aggregate margins of 16.9%, which is much higher than the aggregate profit margin. The aggregate 2018 Medicare profit margin was 10.3%; the SNF Medicare margin has been above 10% for the past 19 years. During 2018, SNF Medicare profit margins ranged from -0.7% to 19.7%. For-profit SNF Medicare profit margins averaged 13.0%; non-profit margins averaged 0.5 . . .
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