Nursing facilities in Massachusetts lose substantially more money per Medicaid patient, per day than the national average, according to a national report.

The study, commissioned by the American Health Care Association, shows that Massachusetts has the 4th highest Medicaid shortfall gap.  Because over two out of 3 residents at Massachusetts nursing homes rely on Medicaid, the inadequacy of state funding has led to a dire financial situation for Massachusetts nursing facilities.


The “2015 Medicaid Shortfall Report” also documents:

  • Massachusetts nursing homes lose more than $35 per day, per Medicaid patient compared to the national average shortfall of $22.46 per patient, per day.  

  • On average, Medicaid reimbursed nursing facilities only 85% percent of their projected allowable costs incurred on behalf of Medicaid patients. This means that for every dollar of allowable cost incurred for a Massachusetts Medicaid resident in 2015, MassHealth reimbursed, on average, approximately 85 cents.

  • The average size of a Massachusetts facility is 115 beds, and over two thirds are covered by Medicaid.  This $35 per day Medicaid shortfall means a loss of $2,500 each day for the typical facility, or a cumulative annual loss of over $900,000 per facility for caring for Medicaid residents.


MSCA DataPoints is a regular series outlining important facts and figures related to skilled nursing homes, quality care, funding, and demographics.

ABOUT MSCA:  The Massachusetts Senior Care Association represents a diverse set of organizations that deliver a broad spectrum of services to meet the needs of older adults and people with disabilities. Its members include more than 400 skilled nursing and rehabilitation facilities, assisted living residences, residential care facilities and continuing care retirement communities. Forming a crucial link in the continuum of care, Mass Senior Care facilities provide housing, health care and support services to more than 120,000 people a year; employ more than 77,000 staff members; and contribute more than $4 billion annually to the Massachusetts economy.