Question

Why is it important for a Licensed Nursing Home Administrator to understand payer mix and reimbursement rate?

Answer 1

The knowledge about the mix of payer the nursing home is working with and the information about private and public payers is important in understanding the position and revenue of your nursing home and where it will stand in future.

Depending on type of payer contracts, the same procedure can be reimbursed at a different rate and speed. A practice dealing with payer mix shifted in favor of private payers will collect reimbursement at a higher and faster rate than a payer mix shifted in favor of public payers. The cash flow is affected by the mix of payers your practice works with, and the amount of time taken to receive each reimbursement.

The understanding of payer mix and reimburment rates for Licenced nursing home administrator is crucial for a successful practice. It helps administrator to know which payer mix dealing is more benificial and he can take proper steps for revenue collections and earning.