This article is confusing. At one time, the medicare hospice benefit paid a per diem rate to the provider. The provider was in essence, capitated. The provider was to “live” under the per diem and effectively assume all aspects of care. Capitation was once described as “that’s when they cut your head off.”
Yes, it is really bad — please see my post 12 with some additional info I found.
Basically they want the nursing home to pay for all the meds out of their pocket.