Nursing homes face $4 billion Medicare cut in 2012

CMS is still confirming its early assessment of the unanticipated payments, the agency said, which will help determine whether recapturing the money is necessary. If not, Medicare could give nursing homes a scheduled increase of roughly $530 million. "Given the fact that CMS presents two options in the proposed rule, we are hopeful that our feedback during this administrative process will be heard."

CMS also released the regulations for hospices and psychiatric hospitals; hospices are slated to get a 2.3 percent hike, while psychiatric hospitals will get an 2.74 percent payment increase on average. Also, the hospice regulation creates a new quality reporting system authorized by the healthcare reform law.