Economic considerations are an important factor in converting to single-resident rooms in nursing homes. Betsy Rust and Robert Long estimate new costs and summarize other transition considerations via Health Management Associates.
There is one licensure category for skilled nursing in Michigan, but there are two designations of SNFs for reimbursement purposes. Class I facilities are freestanding. Class III facilities may be freestanding and owned by a county government or may be physically attached to a hospital and considered a hospital long-term care unit (HLTCU). Medicaid payment limits for the two classes are established separately by aggregating cost and utilization data. Class I and Class III facilities also have different Medicaid reimbursement mechanisms for capital costs.