McKnights (08/01/2022) – Although many skilled nursing providers let out a sigh of relief after the Centers for Medicare & Medicaid Services announced a 2.7% net pay increase for SNFs in 2023 on Friday, others were still expressing plenty of concern.
CMS issued the SNF Prospective Payment System final rule for fiscal 2023 on Friday. Providers’ pay boost includes a 3.9% SNF market basket increase plus a 1.5 percentage point forecast error adjustment, as well as a 0.3% lower productivity adjustment.
However, it also includes a 2.3% (or $780 million) decrease as a result of a Patient Driven Payment Model’s parity adjustment to account for unintentional overpayments. The recalibration of PDPM’s parity adjustment factor of 4.6% includes a two-year phase in period in a win for providers — decreasing SNF spending by 2.3% in fiscal 2023 and 2.3% in fiscal 2024. Full story »