San Francisco plans to spend about $600 million to replace the Laguna Honda Hospital and Rehabilitation Center, an effort that “bucks a tenuous trend across the country” to provide care to seniors in their homes or in assisted living facilities, the Wall Street Journal reported on May 7, 2007. “A debate has long raged over whether it’s cheaper to care for the elderly and frail in institutions or at home,” and the federal government “now believes it can save Medicaid dollars and improve elderly people’s lives by encouraging more home care,” the Journal reports. However, nursing homes “still are favored by federal Medicaid payment rules, which in recent years have allowed the elderly and younger disabled to seek alternatives but require them to clear more hurdles to qualify,” according to the Journal.

The Journal reports that Laguna Honda “benefits from unusually friendly treatment from Medicaid,” under which reimbursements are doubled to $338 per patient daily because the facility is licensed as both a hospital and a nursing home, although the facility has only 20 hospital beds. With additional payments from the city, Laguna Honda receives an average of $431 per patient daily, and the new facility could receive as much as $500 per patient daily because of additional payments from Medicaid and the city related to construction costs.

Sounds like a warehouse for the elderly to me!

Dan Frith
Dan Frith

Dan Frith has over 25 years of experience representing individuals and families in cases of medical malpractice throughout Virginia. He has been named "Best Medical Malpractice Attorney" by Roanoker Magazine and is a member of the Million Dollar Advocates Forum. To speak with Dan, contact him by email at