The Centers for Medicare & Medicaid Services late today released a final rule updating Medicare fee-for-service payments for skilled nursing facilities for fiscal year 2016. The rule provides an overall 1.2% update ($430 million) compared to FY 2015 payments, which includes a 2.3% market-basket update, a 0.6 percentage point forecast error reduction that accounts for the difference between the FY 2014 market-basket update and the actual market change for that year, and the statutorily mandated 0.5 percentage point productivity cut. The net update for rural hospital-based SNFs is estimated to be 0.6%, while the net update for urban hospital-based SNFs is 1.4%. Further, to meet the requirements of the Improving Medicare Post Acute Care Transformation Act of 2014, CMS establishes a SNF Quality Reporting Program, and finalizes three initial measures assessing skin integrity, patient falls and functional status. Beginning with FY 2018 payment, SNFs must meet all SNF QRP requirements to avoid a 2 percentage point reduction to their annual payment update factor. In addition, as required by the Protecting Access to Medicare Act of 2014, CMS adopts an all-cause readmission measure for use in the SNF value-based purchasing program, which will begin in FY 2019.

Related News Articles

Headline
The Centers for Medicare & Medicaid Services May 12 released draft guidance for the third round of negotiations for the Medicare Drug Price Negotiation…
Headline
Leaders from the Centers for Medicare & Medicaid Services at the 2025 AHA Annual Membership Meeting May 5 discussed issues on the agency’s agenda in a…
Headline
The AHA April 30 released a report highlighting how hospitals and health systems continue to experience significant financial headwinds that can challenge…
Headline
The Supreme Court April 29 ruled 7-2 in favor of the Department of Health and Human Services in a case that challenged how HHS applied Congress’ formula for…
Headline
The Centers for Medicare & Medicaid Services April 11 issued a proposed rule for the skilled nursing facility prospective payment system for fiscal year…
News
The Centers for Medicare & Medicaid Services April 7 released finalized payment rates for calendar year 2026 Medicare Advantage and Part D plans. Payments…