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Prior to July 1, 1998, SNFs were paid retrospectively based on costs. There were per diem limits on room, board, and routine nursing care. There

Prior to July 1, 1998, SNFs were paid retrospectively based on costs. There were per diem limits on room, board, and routine nursing care. There were no limits on ancillary services (drugs and therapy). What problems are associated with the previous payment system?

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