Changes in federal reimbursement policies led to fewer nursing home patients being admitted to hospitals from 2011-2013. This resulted in improved antibiotic sensitivity in key pathogens and decreased use of antibiotics used to treat multi-drug resistant infections at one urban community hospital. E. coli and Klebsiella pneumoniae sensitivities increased for several antibiotics like ceftriaxone and levofloxacin over this period. Usage of antibiotics used to treat multi-drug resistant organisms like colistin, carbapenems, and tigecycline also decreased from 27%, 25%, and 10% respectively. Admissions from nursing homes decreased as a percentage of total admissions from 20% in 2011 to 15% in 2013.