Skilled Nursing Facility PPS

April 7, 2026

The Centers for Medicare & Medicaid Services (CMS) April 2 issued its fiscal year (FY) 2027 proposed rule for the skilled nursing facility (SNF) prospective payment system (PPS). This rule would update SNF PPS payments relative to the current fiscal year, as required, as well as update the quality reporting program (QRP).

KEY HIGHLIGHTS

The proposed rule would:

Increase aggregate SNF payments by an estimated 2.4% ($888 million) in FY 2027 relative to FY 2026.
Request information on potential updates to the Patient-driven Payment Model (PDPM) to ensure policy reflects current care practices and address case mix upcoding.
For the SNF QRP, remove two COVID-19 vaccination measures for patient and staff, and shorten the timeframe for submitting program data at the end of each quarter from 4.5 months to 45 days.