The American Health Care Association (AHCA) on Wednesday said a new study published in the Journal of the American Medical Directors Association (JAMDA) shows a clear association between higher Medicaid funding and nursing home star (NH) ratings in Care Compare.

The association said researchers from UMass-Boston found higher Medicaid payment rates increased the probability of nursing homes receiving four or five-stars for the overall ratings, health inspection, and staffing domains of the rating system.

“Findings suggest that inadequate Medicaid payment rates undermine NH quality and that nursing homes need to subsidize Medicaid losses with profits from other sources. Policymakers should consider the adequacy of Medicaid payment when seeking to improve quality of care for long-stay residents, as payment policy remains a critical lever for strengthening NH performance,” the study in JAMDA said.

In response to the findings, Clif Porter, president and CEO of AHCA, said Medicaid supports the majority of nursing home residents, and this research reinforces what providers see every day. “When funding is strong, quality is stronger. The study emphasizes that providers are investing government resources into their workforce and quality improvement efforts, yet Medicaid continues to fall short,” he said. 

Porter added that “it is critical that federal and state policymakers protect and strengthen Medicaid funding for long term care so that our residents can continue receiving the high-quality care they deserve.”

Researchers also found that higher Medicaid payments allowed facilities to direct more resources toward staff compensation, training, and other recruitment and retention efforts to increase their staffing star rating. “Collectively, these additional investments―in more qualified staff, enhanced training, and quality improvement initiatives―translate to higher overall star ratings,” the report said.

AHCA said its policy agenda, The Better Way, focuses on ways to protect Medicaid. To support access to care and quality improvement efforts, policymakers must prioritize and defend Medicaid funding for long-term care, the advocacy group said.

Questions or comments? Contact Patrick Connole at pconnole@parkplacelive.com.