The Centers for Medicare & Medicaid Services April 10 issued a proposed rule updating fiscal year 2021 payments for the skilled nursing facilities prospective payment system. CMS proposed a net payment increase of 2.3%, or $784 million, compared to FY 2020.

This includes a 2.7% market-basket update, offset by a statutorily required 0.4 percent productivity reduction. No forecast error adjustment was proposed. With regard to the redesigned SNF payment model implemented in FY 2020, known as “PDPM,” the agency proposes neither a change to weights nor a budget-neutrality adjustment. Instead, CMS plans to continue monitoring provider behavior under PDPM, including patient outcomes and aggregate SNF PPS payments. The agency also notes that it may consider future PDPM-related offsets.

On quality, CMS proposes no changes to the SNF value-based purchasing measures, scoring or payment policies; rather, the agency only makes nominal updates to the program. CMS will accept comments on the rule through June 9.

See the AHA Special Bulletin for more details.

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