An Analysis and Commentary on Federal Health Care Issues by Larry Goldberg

Final FY 2023 Skilled Nursing Facility PPS Update Issued

The Centers for Medicare and Medicaid Services (CMS) have issued a final rule to update the Medicare skilled nursing facility prospective payment system (SNF) for FY 2023. 

The rule includes final update payment rates; a forecast error adjustment; diagnosis code mappings; and a Patient Driven Payment Model (PDPM) parity adjustment. 

“The rule includes requirements for the Skilled Nursing Facility Quality Reporting Program (SNF QRP) and the Skilled Nursing Facility Value-Based Purchasing Program (SNF VBP), including adopting new quality measures for the SNF VBP Program and finalizing several updates to the Program’s scoring methodology. The SNF QRP adopts one new measure to promote patient safety, begins collection of information which will improve the quality of care for all SNF patients, and revises associated regulation text.” 

It also establishes a permanent cap policy to smooth the impact of year-to-year changes in SNF payments related to changes in the SNF wage index. 

The 348-page document is scheduled for publication in the Federal Register on August 3. A copy is currently available at: https://public-inspection.federalregister.gov/2021-16309.pdf This link will change upon publication. 

The wage index tables can be accessed on the SNF PPS Wage page at: https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/SNFPPS/WageIndex.html

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