ANA Press Releases

FOR IMMEDIATE RELEASE/October 28, 1996

CONTACT: Sara Foer [202-651-7023]; Joan Meehan [202-651-7020]

American Nurses Association Applauds Extension of Community Nurse Organization Project

ANA Lobbying Leads to Victory for Nursing and Medicare Beneficiaries

WASHINGTON, DC -- Calling it a victory for patients and nursing, the American Nurses Association (ANA) today commended the Heath Care Financing Administration for extending the Community Nursing Organization (CNO) demonstration project for an additional year.

By combining the financing and delivery of health care services to those over 65 in one package, the CNOs provide mechanisms for addressing patients' needs in an environment of shrinking resources. The demonstration project, a capitated model of nurse-managed health care, provides community-based health services to Medicare beneficiaries at a predictable and controlled rate by using RNs as health educators and care coordinators.

"We are pleased that HCFA has expressed to the White House its commitment to extend the CNO project," said ANA President Beverly L. Malone, PhD, RN, FAAN. "This additional year will serve as a valuable mechanism in collecting more data about the project as well as its effect on Medicare expenditures."

In fact, one of the key reasons HCFA cited to continue the project for an additional year is to evaluate whether CNO enrollment is related to an increase or decrease in Medicare expenditures.

"CNOs save Medicare money by providing better and more accessible care in home and in community settings, which allows beneficiaries to avoid unnecessary hospitalizations and nursing home admissions," confirmed Malone.

The four CNOs are Carondelet Health Care in Tucson, AZ; Carle Clinic in Urbana, IL; Living at Home Block Nurse Program in St. Paul, MN; and, the Visiting Nurse Service of New York in Long Island City, NY. Each is a nurse operated program serving Medicare beneficiaries under contracts that provide a fixed monthly capitation payment for each enrollee. Each CNO offers a package of Medicare benefits, including home care services, physical, occupational, and speech-language therapies, medical equipment and supplies, and ambulance services.

Authorized under the Omnibus Budget Reconciliation Act of 1987, the CNO demonstration project began delivering services in January of 1994. Given that it was originally slated for three years, the project was scheduled to end on December 31, 1996, which would have ceased new enrollment in November as well as discontinued services at the end of this calendar year.

"The CNOs represent outstanding examples of cost-effective quality nursing care and should be permanently maintained," said Malone. "The over 6,000 beneficiaries enrolled benefit from an integrated approach of providing community-based care through an alternative to fee-for-service health care."

ANA was the driving force in efforts to secure legislative language to create the CNO projects and played an integral part in obtaining the one-year extension. When the 105th Congress convenes in January, ANA will continue to work with members of the House and Senate in an effort to secure a longer extension of the CNO project.


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