Skilled nursing providers should be analyzing their operations and bracing for reimbursement reductions that will be triggered by recalibration of the Patient-Driven Payment model, experts warned in April.

The Centers for Medicare & Medicaid Services revealed in its 2022 payment proposal that the agency plans to amend PDPM’s parity adjustment as quickly as possible. SNF spending under the new model, which was intended to be budget-neutral, actually increased by $1.7 billion, or 5%, CMS said. 

CliftonLarsonAllen Principal Deb Emerson forecast a potential reduction of $12 per patient day, which “will certainly have an impact on reimbursement and the operating decisions being made.” 

Emerson suggested SNFs “critically analyze their organizational operations now” to better adjust to coming recalibrations. 

CMS noted COVID-19 likely pushed spending higher. The agency has asked providers to recommend specific targets, methods and best timing of any future pay changes. Comments will be accepted through June 7.