How nursing homes are funded?
Posted on March 10, 2017
There are four ways nursing homes are funded: through Medicare, Medicaid, the Quality Assurance Program and pay from patients.
Percentage of funds covered
For nursing homes in Florida, about 40 percent of long term care expenses are covered by private funds, the Florida Health Care Association says. Medicare, which takes care of expenses for rehabilitation services when an individual is finally discharged from the hospital or a healthcare facility, covers about 19 percent of all long term spending. Medicaid covers about 60 percent of all long term spending, which includes health care costs for patients from low income levels.
Medicaid: The Florida Medicaid Program is open to disabled adults, children as well as pregnant women who qualify for the eligibility requirements. Seniors are included as well.
Medicare: The coverage is offered to people around 65 years or older. Some disabled persons might also qualify for the program’s coverage, along with people who suffer from end-stage kidney diseases and conditions.
Long-term care insurance: This is covered by private funds. Patients with long-term care insurance policies must find out what conditions and coverage as well as restrictions they have. If they need additional coverage, they must ask their insurance provider how.
Starting a business
If you have plans to start your own nursing home business, here are some tips you should know:
Have a business model
The best nursing homes in Florida follow a good business model. If you haven’t got one yet, make one. Remember, this is why franchises cost a great deal. They essentially provide buyers with a blueprint of their business. You need the same. It’ll need to be polished and revised but putting this down in writing will help you determine the kind of business you’ll build.
Establish a billing system
You’ll need to have a billing system in place. You could start with a medical billing service until you set up your own. This should make it easier for you to get your business going. Be sure to go with a reliable billing company. With plenty of online resources, it’s easy to find one with a trustworthy reputation.
Get liability insurance
Go for general and professional liability insurance coverage to make sure malpractices, accidents and anything else will be covered in the future. That way, you’ll be covered.
These are just a few things you need to know before you build your nursing home business from the ground up. Hopefully, these can help you off to a good start.