Nursing home case-mix differences between Medicare and non-Medicare and between hospital-based and freestanding patients.

Case-mix differences between Medicare and non-Medicare nursing home patients and between hospital-based and freestanding nursing home patients were assessed for a sample of 756 patients from 26 nursing homes in six states in 1983. Significant differences were found between Medicare and non-Medicare patients and between hospital-based and freestanding nursing home patients. Thus, two attributes, the percentage of Medicare patient days and whether a nursing home is hospital-based or freestanding, probably should be taken into consideration as facility-level case-mix indicators in determining Medicare reimbursement until a more refined approach to case-mix reimbursement can be developed. Hospital-based/freestanding case-mix differences also suggest that Medicaid reimbursement should recognize potential differences in cost structure between these two types of facilities.