Nursing Homes are medical care options that provide nursing or convalescent care for three or more persons unrelated to the licensee. A nursing home provides care of chronic conditions or short term convalescent or rehabilitative care, for which medical and nursing care are indicated. Some residents are admitted for short stays of convalescent or rehabilitative care following hospitalization. In addition to licensure, nursing homes that wish to receive Medicare and Medicaid reimbursement must be certified in accordance with federal law. Beyond licensure and certification requirements, nursing homes must also honor the federal Nursing Home Patient’s Bill of Rights. These rights are designed to promote and protect the well-being of nursing home residents.

Funding options for nursing home care include: private funding, long-term care insurance, Medicare, and in large part Medicaid. Paying for nursing home care is a major concern for many families as well as the government. Historically, Medicaid has paid for about half of the total cost of nursing home care, with Medicare and private long-term care insurance paying but a fraction of the cost. Concerned about the growth of the Medicaid program, there is interest in identifying and supporting ways for individuals and families to accept greater financial responsibility for the cost of nursing home care.