nursing facilities’ revenues

Research also shows that nursing facilities are much more reliant on government funding compared to physicians. More than half of nursing facilities’ revenues, at 53.2%, are from Medicare and Medicaid, compared to 30.2% of physicians’ revenues, with the remainder coming from private sources.
Labor accounts for about 70% of a facilities’ costs, and when Medicare and Medicaid reduce payments, it often forces facilities to reduce staffing, and this can result in a lower quality of care, according to research cited in the Alliance report.