Nursing-Facility Stocks Plummet On Rate-Cut Proposal

[Purveyor]

By Dinah Wisenberg Brin Of DOW JONES NEWSWIRES

Nursing-facility stocks sank Friday after Medicare proposed a potential 11.3% rate cut for its fiscal year starting Oct. 1.

The proposal, one of two options the Centers for Medicare & Medicaid Services is considering, is subject to a 60-day public comment period and may ultimately be less severe.

Kindred Healthcare Inc. (KND) shares fell 16% to $23.35, Skilled Healthcare Group Inc.(SKH) tumbled 13.6% to $12.45, and Sun Healthcare Group Inc. (SUNH) skidded 16.4% to $11.40.

Medicare late Thursday issued a proposed rule that discusses two options under consideration in setting fiscal 2012 payment rates for skilled nursing facilities.

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http://online.wsj.com/article/BT-CO-20110429-710124.html

[patrice]

1. Hmmm, looks like Carlyle Group got out of LTC just in time.

http://www.bizjournals.com/losangeles/news/2010/12/14/hcp-buys-hcr-manorcare-assets.html

[Igel]

2. That'll make getting people into nursing homes harder.

Probably make the pre-Medicaid price structure a bit steeper, too, impoverishing more elderly when they first need nursing home care.

[boppers]

3. My grandfather was paying $3,000 a month for a room.

He moved in with my little brother for free, instead, to save money.

I suspect a lot of similar stories will be happening.

[Mimosa]

4. *eek!*

Just eek! Distressing and frightening. I foresee possibly killing myself if I got sick and helpless. Which is probably what 'they' want us to do. :(