The Case-Mix Reimbursement System for Nursing Homes May Not Be

The case-mix reimbursement system for nursing homes may not be perfect because

A) it provides nursing homes with incentives to admit only severely ill patients.
B) it provides nursing homes with incentives to admit only less costly patients.
C) even with differential payment rates, if differences in payment rate are not correctly matched with differences in cost, nursing homes may find it profitable to accept some patients while turning others away.
D) when the state pays only a single fixed rate per day for nursing home care, it means that some patients may be denied care.
E) with revenue per day fixed, a nursing home can increase profits by accepting only less costly patients who need very little care.

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