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Cake day: January 12th, 2026

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  • In arrangements like this, an insurer (often through Medicare Advantage) pays nursing homes a fixed monthly amount per resident, then layers on incentives tied to cost and utilization: (1) bonus payments if the facility meets targets such as lower hospital transfer rates or quality scores, (2) shared-savings payouts where the nursing home gets a portion of the medical cost savings if overall spending drops, (3) sometimes penalties or clawbacks if targets are missed, and (4) care-management support (e.g., insurer-employed clinicians embedded in the facility) that influences how care is delivered and measured — the controversy arises when these financial incentives may unintentionally discourage medically necessary hospital transfers.