SNF PPS Final Rule Contains 11.1% Payment Cut!

On Friday, the Centers for Medicare and Medicaid Services (CMS) issued the Skilled Nursing Facility (SNF) Prospective Payment System (PPS) payments for FY 2012 (October 1, 2011 to September 30, 2012) which includes an 11.1% rate cut. This represents a $3.87 billion reduction from FY2011 payments. The cut is a result of the "unintended spike" in payment rates upon implementation of RUG-IV.

The national associations were quick to respond and express their dissatisfaction. “We are appalled that CMS chose to implement an 11.1% across-the-board rate cut for skilled nursing facilities in one year. We believe that any across the board cut is unwarranted and problematic, and one of this magnitude is unprecedented.” said Larry Minnix, LeadingAge President and CEO.

Governor Mark Parkinson, President & CEO of the American Health Care Association (AHCA) said , “The CMS rule makes reductions beyond what is necessary for budget neutrality. This will threaten our ability to provide quality care to America’s seniors. Coupled with changes in group therapy definitions, this drastic reduction will be especially challenging for skilled nursing facilities to manage.”

Please see the CMS news release for additional details on the PPS final rule.

HW Healthcare Advisors will calculate the rates by CBSA as soon as the information is available. Please contact your HW Healthcare Advisor or Steve Anderson if you would like to see how your facility will be affected.