A new report by Forbes contributor John G. Goodman (online, Oct. 20) says the federal government has announced it is changing how its nursing home ratings system will work. Goodman says, nonetheless, “Pay-for-performance has no chance of succeeding unless the payer can measure quality. Without quality control, provider can always lower costs by simply providing less care.”
Currently, the feds use a five star system to rate nursing homes. According to Goodman’s Forbes story only one of three standards to determine ratings – the “annual health inspection” – actually employs an independent evaluation process. The other two measurements of quality – staff levels and quality stats – are the result of self-evaluations.