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October 17, 1966


JAMA. 1966;198(3):33-35. doi:10.1001/jama.1966.03110160011003

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Nursing Home Medicare Payments—  The Senate passed legislation that would give nursing homes more liberal payment for medicare patients.The bill amends the definition of reasonable costs to include return on the fair market value of the facilities, as determined in accordance with the Federal Housing Authority or similar appraisals, sufficient to attract capital investment.The bill states that capital investment for a specific purpose, namely, extended care facilities, is entitled to a return greater than that available through investment in risk-free securities.Present federal reimbursement formula is 2% above operating costs, a formula nursing homes contend is too low.

Medicare Changes—  The Senate Finance Committee voted to add the cost of outpatient drugs to the medicare program at an estimated cost of $200 million to $300 million a year. The government would only pay for drugs prescribed on a generic name basis.The committee also approved an amendment that