Table 3. Distribution of Ownership Type Ownership Type Count Percentage For profit Corporation 152 66.4% – For profit Individual 3 1.3% – For profit Limited liability company 2 0.9% – For profit Partnership 14 6.1% – Government Federal 1 0.4% – Government Hospital district 7 3.1% – Government State 5 2.2% – Non profit Church related 12 5.2% – Non profit Corporation 32 14.0% – Non profit Other 1 0.4% – Total 229 100.0% Source: Study team analysis of 2010 Nursing Home Compare database. Average Per Diem Rates and Cost Components To provide a sense of relative costs per patient day in nursing homes and their Washington’s influence on per diem payment rates, the study team utilized the 2011 payment rate data from the state and identified 201 out of 229 facilities in operation. The state of Nursing Home Rates Section of the Office of Rates Management Washington’s (ORM), part of the Aging and Disability Services Administration (ADSA) of the DSHS, prospectively sets Medicaid reimbursement rates individually for each nursing facility, representing the maximum level of payment per patient day for each facility. ORM bases the rates on each allowable costs, occupancy level, and individual care needs. More home’s specifically, the rates are computed from a series of 10 components (the first seven are the main components, which, apart from direct care, are subject to minimum occupancy adjustments): which represents 57 percent of the total nursing facility payment and Direct care, incorporates payment for direct care staff wages and benefits, non-prescription medication, and medical supplies, is set using case-mix principles; which represents about one percent of the total nursing facility payment Therapy care, and includes physical, occupational, and speech therapy payments; which generally accounts for 13 percent of nursing home spending, Support services, including dietary services, housekeeping, and laundry; which account for about 20 percent of nursing facility payments, including Operations, administrative, utilities, accounting, and maintenance costs; which accounts for about one percent of payments, awarding facilities Variable return, based on relative efficiency and calculated as a percentage of the combined costs of direct care, therapy care, support services, and operations;
Table 3. Distribution of Ownership Type Ownership Type Count Percentage For profit – Corporation 152 66.4% For profit – Individual 3 1.3% For profit – Limited liability company 2 0.9% For profit – Partnership 14 6.1% Government – Federal 1 0.4% Government – Hospital district 7 3.1% Government – State 5 2.2% Non profit – Church related 12 5.2% Non profit – Corporation 32 14.0% Non profit – Other 1 0.4% Total 229 100.0% Source: Study team analysis of 2010 Nursing Home Compare database. Average Per Diem Rates and Cost Components To provide a sense of relative costs per patient day in Washington’s nursing homes and their influence on per diem payment rates, the study team utilized the 2011 payment rate data from the state and identified 201 out of 229 facilities in operation. The state of Washington’s Nursing Home Rates Section of the Office of Rates Management (ORM), part of the Aging and Disability Services Administration (ADSA) of the DSHS, prospectively sets Medicaid reimbursement rates individually for each nursing facility, representing the maximum level of payment per patient day for each facility. ORM bases the rates on each home’s allowable costs, occupancy level, and individual care needs. More specifically, the rates are computed from a series of 10 components (the first seven are the main components, which, apart from direct care, are subject to minimum occupancy adjustments): Direct care, which represents 57 percent of the total nursing facility payment and incorporates payment for direct care staff wages and benefits, non-prescription medication, and medical supplies, is set using case-mix principles; Therapy care, which represents about one percent of the total nursing facility payment and includes physical, occupational, and speech therapy payments; Support services, which generally accounts for 13 percent of nursing home spending, including dietary services, housekeeping, and laundry; Operations, which account for about 20 percent of nursing facility payments, including administrative, utilities, accounting, and maintenance costs; Variable return, which accounts for about one percent of payments, awarding facilities based on relative efficiency and calculated as a percentage of the combined costs of direct care, therapy care, support services, and operations;