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


 

Related Resources

 

CMS, OIG, and Other Agency Resources

Public
  Adverse Events in Skilled Nursing Facilities: National Incidence Among Medicare Beneficiaries, Office of the Inspector General (March 3, 2014)