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States vary dramatically in their reimbursement for nursing home care. This paper discusses these variations (e.g., prospective vs. retrospective reimbursement, institution-specific reimbursement, imputed rates); the results and methodological problems of various cost studies; and the areas where further research should prove productive. The author, noting the conflict between the need for immediate action and the dearth of suitable data, concludes with proposals that she believes would constructively regulate current reimbursements.
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