The Centers for Medicare & Medicaid Services late Friday issued a proposed rule updating payment rates for skilled nursing facilities for fiscal year 2020. CMS proposes a net payment increase of 2.5 percent, or $887 million, compared to FY 2019. This includes a 3.0 percent market-basket update, offset by a statutorily required 0.5 percent productivity reduction.
 
The rule also would implement a new SNF payment model that was finalized in last year’s rulemaking. This would contribute to substantial payment improvements for hospital-based SNFs in FY 2020 (12.6 percent increase for urban and 23.3 percent increase for rural hospital-based SNFs).
 
In addition, the rule would put in place a process for updating ICD-10 codes under the new payment model, and make the definition of group therapy more consistent with the definition in other post-acute care payment systems. 
 
For the SNF Quality Reporting Program, CMS proposes to modify one measure, adopt two new process measures and 22 standardized patient assessment data elements, plus seven more data elements related to social determinants of health. 
 
CMS will accept comments on the rule through June 18.

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