A quality-based payment strategy for nursing home care in Minnesota

Robert L. Kane, Gregory Arling, Christine Mueller, Robert Held, Valerie Cooke

Research output: Contribution to journalArticle

30 Citations (Scopus)

Abstract

This article describes a pay-for-performance system developed for Minnesota nursing homes. In effect, nursing homes can retain a greater proportion of the difference between their costs and the average costs on the basis of their quality scores. The quality score is a derived and weighted composite measure currently composed of five elements: staff retention (25 points), staff turnover (15 points), use of pool staff (10 points), nursing home quality indicators (40 points), and survey deficiencies (10 points). Information on residents' quality of life and satisfaction, derived from interviews with a random sample of residents in each Minnesota nursing home, is now available for inclusion in the quality measure. The new payment system was designed to create a business case for quality when used in addition to a nursing home report card that uses the same quality elements to inform potential consumers about the quality of nursing homes. Although the nursing home industry has announced general support for the new approach, it has lobbied the legislature to delay its implementation, claiming concerns about operational details.

Original languageEnglish
Pages (from-to)108-115
Number of pages8
JournalGerontologist
Volume47
Issue number1
DOIs
StatePublished - 2007

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Home Care Services
Nursing Care
Nursing Homes
Incentive Reimbursement
Costs and Cost Analysis
Industry
Quality of Life
Interviews

Keywords

  • Accountability
  • Nursing homes
  • Pay for performance
  • Payment
  • Quality

ASJC Scopus subject areas

  • Geriatrics and Gerontology
  • Gerontology
  • Aging

Cite this

A quality-based payment strategy for nursing home care in Minnesota. / Kane, Robert L.; Arling, Gregory; Mueller, Christine; Held, Robert; Cooke, Valerie.

In: Gerontologist, Vol. 47, No. 1, 2007, p. 108-115.

Research output: Contribution to journalArticle

Kane, Robert L. ; Arling, Gregory ; Mueller, Christine ; Held, Robert ; Cooke, Valerie. / A quality-based payment strategy for nursing home care in Minnesota. In: Gerontologist. 2007 ; Vol. 47, No. 1. pp. 108-115.
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