Skilled Nursing Facility PPS
August 26, 2025
The Centers for Medicare & Medicaid Services (CMS) July 31 issued its fiscal year (FY) 2026 final rule for the skilled nursing facility (SNF) prospective payment system (PPS).
KEY HIGHLIGHTS
The final rule will:
- Increase aggregate SNF payments by an estimated 3.2% ($1.16 billion) in FY 2026 relative to FY 2025. This includes a 3.3% market basket update reduced by a 0.7% productivity cut, as well as a 0.6% increase due to a FY 2024 market basket forecast error.
- Remove four patient assessment data elements from the SNF quality reporting program (QRP).
- Remove the health equity adjustment from the SNF value-based purchasing (VBP) program.
View the entire AHA Regulatory Advisory.
Key Resources
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- Regulatory Advisory: CMS Releases FY 2026 Skilled Nursing Facility PPS Final Rule
- Regulatory Advisory: CMS Releases FY 2026 Skilled Nursing Facility PPS Final Rule (8-1-2025)
- Skilled Nursing Facility Prospective Payment System Final Rule for FY 2025 (8-27-24)
- Regulatory Advisory: Skilled Nursing Facility PPS Proposed Rule for FY 2025(4-24-24)
- Regulatory Advisory: Skilled Nursing Facility PPS Proposed Rule for FY 2023 (5-20-22)
- Regulatory Advisory: Skilled Nursing Facility PPS Final Rule for FY 2022, (8-26-21)
- Special Bulletin: CMS Releases FY 2022 IRF and SNF PPS Final Rules (7-30-21)
- Advisory: Skilled Nursing Facility PPS Proposed Rule for FY 2022 (4-29-21)
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- Letter: Comments to CMS on its CY 2023 Proposed Skilled Nursing Facility PPS (6-16-22)
- Letter: AHA Raises Concerns With Prototype PAC Payment Model (8-24-21)
- Letter: AHA Comments on Skilled Nursing Facility Proposed Rule For FY 2022 - 6-7-2021
- Member Call: Skilled Nursing Facility PPS: Proposed Rule FY2021, May 20, 2020
- Member Call: Skilled Nursing Facility PPS: Final Rule for FY 2020 (August 21, 2019