Chiquita Brooks-LaSure, CMS Administrator
Credit: Chip Somodevilla/Getty Images

Skilled nursing providers are on tap to receive a 3.7% pay hike next fiscal year, under a proposed pay rule issued by The Centers for Medicare & Medicaid Services in April.

The proposal includes a net increase of $1.2 billion in Medicare Part A payments, while a relatively large 6.1% market basket update adds $2 billion to address inflationary factors. The rate also reflects a 0.2% productivity adjustment and a $745 million cut intended to offset unintended pay under the Patient Driven Payment Model.

Against expectations, the proposed rule did not include details on a federal staffing mandate, but the agency said they would come “later this spring.”

“It is vital that Medicare reflect the increasing costs — including those imposed by government mandates —nursing homes are facing …,” cautioned Mark Parkinson, president and CEO of the American Health Care Association.