Skilled Nursing Facility PPS

August 27, 2024

At A Glance

The Centers for Medicare & Medicaid Services (CMS) July 31 issued its fiscal year (FY) 2025 final rule for the skilled nursing facility (SNF) prospective payment system (PPS). This rule updates SNF payments and modifies CMS’ nursing home enforcement authority and the SNF Quality Reporting Program (QRP) measures and reporting requirements.

Key Highlights

The rule will:

  • Increase aggregate SNF payments by an estimated 4.2% ($1.4 billion) in FY 2025 relative to FY 2024. This includes a:
    • 3.0% market basket update reduced by a 0.5% productivity cut.
    • 1.7% increase due to FY 2023 market basket forecast error.
  • Make technical changes to its Patient-Driven Payment Model (PDPM) ICD-10 code mapping that assigns patients to clinical categories.
  • Revise CMS nursing home enforcement authority to allow the agency to impose multiple financial penalties on nursing homes with safety deficiencies.
  • Adopt and modify patient assessment items addressing social determinants of health (SDOH).

View the entire AHA Regulatory Advisory.

 

Key Resources


 

Related Resources

 

CMS, OIG, and Other Agency Resources

Public
  Adverse Events in Skilled Nursing Facilities: National Incidence Among Medicare Beneficiaries, Office of the Inspector General (March 3, 2014)