CMS Updates on SNF VBP

On July 31, the Centers for Medicare & Medicaid Services (CMS) issued a final rule [CMS-1679-F] outlining fiscal year (FY) 2018 Medicare payment rates and quality programs for skilled nursing facilities (SNFs). In that rule, CMS finalized some key components of the SNF Value Based Purchasing (VBP) program, which impacts reimbursements starting next year.

As a reminder, starting on October 1, 2018 for FY 2019, CMS will adjust Medicare payments to providers based on how well they manage hospital readmissions based on performance in this calendar year (CY) 2017 compared to CY 2015. Some SNFs will see some sort of payment reduction, which can be as high as two percent for all of their Part A Medicare payments for an entire fiscal year. There is a potential for some SNFs who achieve low rehospitalization rates to see an increase in reimbursements, but how many and by how much will not be determined until the performance period of calendar year 2017 concludes.

AHCA’s summary of newly finalized SNF VBP program components can be found on our website here.

For more information on the SNF VBP program and to access tools and resources on ahcancalED and other sites, please visit AHCA's VBP website here.

Please contact David Gifford or Thomas Martin with any questions.