fbpx

< Back to Thought Leadership

Skilled Nursing And Post-Acute Providers Have A Proposed New Payment System

The newly proposed Department of Health and Human Services (HHS) budget was recently announced for skilled and post-acute nursing providers. According to major trade groups, the changes for skilled nursing providers are not seen as positive.

Payments for post-acute care providers would be changed, establishing a unified payment system based on the needs of patients, rather than where they receive care, starting in fiscal year 2024.

According to the HHS, “The first year of implementation is required to be budget-neutral relative to estimated payments that would otherwise have been paid in FY 2024 absent this change.”

Payment rates under the new system would be set prospectively on an annual basis with episode grouping and pricing based on the average cost for providing post-acute care services for a diagnosis. The changes are expected to save $80.2 billion over the next decade, according to HHS.

For fiscal 2019 to 2023, all primary post-acute care settings — including skilled nursing facilities, home health agencies, inpatient rehabilitation facilities, and long-term care hospitals — will receive a lower annual Medicare payment update. However, exactly how much lower is not clear at this time.

The announcement suggests support to Medicaid and Medicare, but details to back up that claim are not present. The budget proposes Medicaid per capita caps and block grants and cuts to Medicare, which can have negative consequences for beneficiaries and providers and threaten important community supports funded under the Older Americans Act.

The plan to lower the frequency of surveys for top-performing skilled nursing communities is one aspect of the budget proposal that could be good news for providers.

According to the HHS, the proposal gives the Secretary authority to make adjustments statutorily for required survey frequencies for top-performing skilled nursing facilities and reinvest resources to strengthen oversight and quality improvement for poor performing facilities.

The proposed measure has no impact on overall spending in the budget.

We’ll keep you posted as new information emerges.

In the meantime, if you have questions or would like us to assist in your organization’s compliance with clinical and financial systems review, MDS reviews, MDS education, RCS-1, survey readiness, QAPI or requirements of participation, please contact our post-acute care team today.

If you’d like to learn more about our post-acute care services, click here.

 

Share this article

construction cybersecurity

Building a Secure Future: Cybersecurity Strategies for the Modern Construction Firm

By Matt Mitchell, CPA, CCIFP, Manager at Blue & Co. The construction industry is undergoing a significant digital shift. As more firms begin to adopt cloud platforms, mobile tools, and […]

Learn More
SBA's E2G Manufacturing Program

SBA’s E2G Program Highlights Manufacturing’s Real Growth Constraint: Talent

By Jordan Miller, CPA, Senior Manager at Blue & Co. If you spend time talking with manufacturers right now, especially leaders in small to mid-sized operations, you start to hear […]

Learn More
Preserving 340B Eligibility: Why Hospitals Need a Proactive DSH Strategy

Proactive DSH Strategy for Preserving 340B Eligibility

For hospitals that depend on 340B savings, optimizing the Disproportionate Share Hospital (DSH) percentage that drives 340B eligibility should be treated as a financial and operational priority. In simple terms, […]

Learn More