The financial position of a majority of extended care facilities, skilled nursing facilities, long term care facilities, etc (over 79%, source: AHA, JCAHO, CMS)) has significantly eroded over the past several decades. Medicare and Medicaid* (*the single largest source of funding) have largely utilized the Prospective Payment System (PPS) formula and methodology to reimburse these facilities.

The Prospective Payment System has not kept pace with increasing costs per facility and per patients.

In your opinion isthe PPS a fair and sufficient basis for reimbursement to long term care facilities, or are there other options and paradigms to fund this alternative healthcare delivery system?

Please explain your position, convincingly.