Medicare Rating System for Nursing Homes Could Mislead Stakeholders, Analysis Finds

Medicare's Nursing Home Compare rating system often is based on incomplete information and can therefore mislead consumers, investors and other stakeholders about facilities' conditions, according to an analysis by the New York Times. The ratings are used by providers to help decide where to refer patients when they are discharged from hospitals and they are usually the first metric investors and lenders use to help decide whether to fund a nursing home.

• "Medicare Star Ratings Allow Nursing Homes To Game the System" (Thomas, "Business Day," New York Times, 8/24).