Q: Skilled nursing facilities were recently issued corrected value-based purchasing reports due to a calculation error by the Centers for Medicare & Medicaid Services. Did the error cause much trouble?
A:CMS reported that 14% of SNFs were impacted by the error. Any SNF receiving a downward adjustment to its value-based incentive payment, and in turn its FY2020 Medicare rates, likely would not be pleased with the correction.
Q: Are there any promising payment strategies long-term care providers should take notice of?
A:Pay for performance is a good entry point allowing providers to benefit from the good quality outcomes they deliver with typically limited to no downside financial risk. While few CMMI models today allow PAC/LTSS providers to lead, we are optimistic that new bundled and/or population-based payment models that will are on the horizon.
Q: Are there any strategies providers should be wary of?
A:Providers should read contracts or agreements with health plans and accountable care organizations carefully. Some contracts are less than fair to providers, requiring them to hold beds without compensation or pay a percentage of all their Medicare Part A revenue to the ACO to take part.
From the November 2019 Issue of McKnight's Long-Term Care News
