Nursing homes and hospitals often have close relationships. That is because individuals may go to and from one facility to another on different occasions. This relationship works both ways. On one hand, many seniors move into a nursing home only after a serious medical event which places them in a hospital. For example, after a heart attack, stroke, fall at home, or similar event, a senior may require hospitalization. Often, when the immediate injury is healed, the individual is still not in a condition to go back to prior living situation. That is why many seniors move into a nursing home directly into a nursing home.
Alternatively, while nursing homes do provide skilled medical care, they are not capable of providing every medical need for residents. When a nursing home resident suffers a serious medical emergency or an advanced ailment, then the resident must often go back into a hospital. This back and forth may happen several times, and there is therefore a clear relationship between many nursing homes and hospitals.
This is a natural relationship that is necessary to ensure that ailing seniors receive the exact care they need at the right time. However, this also sets up a tangential financial relationship between these entities. Hospitals often want to have the residents admitted for care when finances incentivize it. On the other hand, depending on insurance and payment structures, they often have the incentive to release patients–particularly those who have taken up a room for an extended length of time–into a nursing home. The nursing home obviously likes this as it is another bed filled and money coming in.