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​Assisted living services are not reimbursed by Medicare, though some assisted living providers may also operate skilled nursing facilities, home health agencies, or outpatient therapy services that receive Medicare reimbursement.

While changes to Medicare payment and delivery may not directly affect assisted living operations, such changes can have an effect because most residents are Medicare beneficiaries. For example, as Medicare payment to hospitals and skilled nursing facilities becomes tied to hospital readmission rates and other measures, these providers may look to assisted living operators as partners to improve outcomes.


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