Hospitals and Nursing Homes Brace for Medicare Cuts

Businessweek.com: By  on October 04, 2012

Hospital and nursing home managers are reaching for the aspirin again. No matter who wins on Nov. 6, most Democrats and Republicans agree in principle that federal spending on Medicare and Medicaid will need to go under the knife, above and beyond the cuts written into the 2010 health-care overhaul.

While history suggests it’s hardly a sure thing that the two parties will reach a deal, even the possibility of one is a risk for institutional health-care providers. That’s because there aren’t a lot of other places to find savings. Congress has so far proved unwilling to slice doctors’ pay. Big Pharma makes for a good populist target, but prescription drugs are less than 10 percent of total Medicare and Medicaid spending. That leaves hospitals and nursing homes. Read more