What is the per diem payment model used for nursing homes?

• A. Per diem fixed daily rate around $200
• B. Weekly rate
• C. Monthly lump sum
• D. Hourly rate

Answer: (A)

A fixed daily per-diem payment is used in nursing homes. This means the facility gets a set amount for each resident for every day of the stay, covering the typical services and care provided that day. The rate is designed to be predictable for budgeting and simpler to administer, and it may be adjusted by case mix to reflect varying care needs, but the payment is still daily, not tied to hours or a different time frame. The figure given (around $200 per day) reflects a common ballpark for these daily rates, though exact amounts vary by policy and region. Other options—weekly, monthly lump sum, or hourly—don’t match how SNF payments are structured, since the ongoing daily needs drive the per-diem approach.