Feds’ value-based changes present ‘long overdue’ opening for SNFs

Apr 6, 2023 | Nursing HPRD & Turnover

News digest: CMS releases updated rules

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Prepare Now: New SNF VBP Measures will Determine Future Medicare Reimbursements

New CMS skilled nursing facility value based purchasing (SNF VBP) measures take effect October 1, 2023 that will determine Medicare Part A rates beginning October 1, 2025. It is imperative that administrators, DONs, finance, QAPI and operations leaders be familiar with these new measures and understand how they will impact future reimbursement rates.

SNF VBP Essentials is a one-hour course that details the new CMS measures and discusses how CMS calculates VBP measures, risk adjustment, facility score and payment adjustments. The course provides instructions on using a SNF VBP prediction calculator tool (included with the course) that helps estimate the financial impact the measures will have on a nursing facility’s Medicare Part A revenue.

The training delves into the existing all-cause hospital readmission measure and the three new measures to be counted this October 1. Also covered are the four additional measures CMS will incorporate into SNF VBP calculations effective October 1, 2024.

This means SNF VBP is expanding from one measure to eight measures over two years. Adopting best practices now to prepare for these new measures will help avoid Part A payment penalties and potentially boost future incentive payments.

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Kyllo, Dave. Prepare Now: New SNF VBP Measures Will Determine Future Medicare Reimbursements. www.ahcancal.org/News-and-Communications/Blog/Pages/Prepare-Now-New-SNF-VBP-Measures-will-Determine-Future-Medicare-Reimbursements.aspx.

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UPDATED: CMS finalizes 4 percent pay raise, keeps contested turnover measure

Nursing homes will get a higher-than-expected 4.0% increase in their Medicare Part A payments in fiscal 2024, per a finalized Centers for Medicare & Medicaid Services rule publicized late Monday.

But major provider organizations immediately called the extra 0.3% too little to offset increasing costs, especially those likely to blossom from an expected federal staffing minimum.

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Marselas, Kimberly, and James M. Berklan. “UPDATED: CMS Finalizes 4 Percent Pay Raise, Keeps Contested Turnover Measure.” McKnight’s Long-Term Care News, Sept. 2023, www.mcknights.com/news/breaking-cms-finalizes-4-percent-pay-raise.

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CMS Finalizes and Proposes Slew of VBP Measures Connected to Quality, Staffing, Falls, Discharges

Skilled nursing facilities can expect three finalized measures, along with several proposed measures for future years related to the value-based purchasing program, the Centers for Medicare & Medicaid Services (CMS) officials said Wednesday.

The various measures include stipulations connected to quality, staffing turnover, resident falls and discharges.

Chris Palmer, SNF VBP program coordinator with CMS, gave a quick overview of each measure related to VBP as outlined in the 2024 SNF Prospective Payment Systems’ (PPS) Proposed Rule, and encouraged providers to submit comments by June 5 via email or in writing by regular mail, express or overnight mail.

Two measures finalized by CMS in the 2023 SNF PPS Final Rule and due to be incorporated in 2026 include: SNF healthcare-associated infections requiring hospitalization (SNF HAI), and total nursing hours per resident day staffing.

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Stulick, Amy. “CMS Finalizes and Proposes Slew of&Nbsp; VBP Measures Connected to Quality, Staffing, Falls, Discharges.” Skilled Nursing News, May 2023, skillednursingnews.com/2023/05/cms-finalizes-and-proposes-slew-of-vbp-measures-connected-to-quality-staffing-falls-discharges.

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Feds’ value-based changes present ‘long overdue’ opening for SNFs

Payment and quality experts on Wednesday described extensive changes proposed for skilled nursing’s value-based purchasing program as “long overdue” and a way to “reset the playing field.”

In addition to updating the 30-day all-cause readmission measure, proposed new measures would account for operators’ performance on metrics related to nurse staffing turnover, discharge function, hospitalizations of long-stay residents and falls. Performance data would be phased in depending on the measure starting as early as FY2024, with incentives for some measures available as soon as FY2026. 

While delaying an announcement on its staffing rule, CMS touted its proposed new value-based staffing measure as a way to drive adequate staffing levels.

Under the proposed rule, the Payroll-Based Journal staffing measure already reported to Care Compare would be reported for value-based purchasing purposes starting in fiscal 2024, with payment effects beginning in FY 2026.

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Marselas, Kimberly. “Feds’ Value-based Changes Present ‘Long Overdue’ Opening for SNFs.” McKnight’s Long-Term Care News, 6 Apr. 2023, www.mcknights.com/news/feds-value-based-changes-present-long-overdue-opening-for-snfs.

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BREAKING: CMS proposes 3.7 percent nursing homes pay boost; no details on staffing minimum

The Centers for Medicare & Medicaid Services Tuesday proposed a 3.7% pay hike for nursing homes but declined to issue a staffing minimum as part of its annual payment rule proposal. The agency said it “remains committed” to doing so “later this spring.”

The agency had said it would propose the minimum staffing mandate as part of its Skilled Nursing Facility Prospective Payment System for fiscal year 2024 in a rule-making calendar published in the Federal Register.

“CMS continues to review the feedback and evidence from both the comment solicitation and mixed-methods study, all of which will be used to inform proposals for minimum direct care staffing requirements in nursing homes in rulemaking this spring,” the agency said Tuesday.

CMS did propose additional quality reporting and value-based purchasing measures, chief among them a new nursing staff turnover measure billed as “part of the Administration’s focus to ensure adequate staffing in long-term care settings.”

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Marselas, Kimberly. “BREAKING: CMS Proposes 3.7 Percent Nursing Homes Pay Boost; No Details on Staffing Minimum.” McKnight’s Long-Term Care News, 5 Apr. 2023, www.mcknights.com/news/breaking-cms-proposes-3-7-percent-nursing-homes-pay-boost-no-details-on-staffing-minimum.

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Typically, nursing home quality regulations include minimum staffing standards to ensure that facilities provide residents with quality care. Meeting the average staffing level has been associated with better performance on process quality measures, on-site survey scores, and resident outcome measures.

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OIG Reports on CMS Use of Data on Nursing Home Staffing: Progress and Opportunities to Do More

However, CMS has opportunities to better use the staffing information that nursing homes report. Specifically, the staffing information that CMS provides on Care Compare could be more useful to consumers if it included data on nurse staff turnover and tenure, as required by Federal law. CMS reported that the COVID-19 pandemic delayed its progress to implement these requirements.”

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Research on How Skilled Nursing Facility Staffing Impacted by New Payment Rules

Skilled nursing facility (SNF) staffing levels across several provider types have fallen since Medicare implemented new payment rules meant to drive value over volume of services, according to a new Health Affairs study.

The study published last week found that physical therapist and occupational therapist staffing levels at SNFs fell by 5 percent to 6 percent from October to December 2019 compared to the period before Medicare implemented the Patient Driven Payment Model (PDPM).

Physical therapy assistant and occupational therapist assistant levels also decreased following PDPM implementation, falling by 10 percent compared to the pre-implementation period.

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New research examines if nursing home staff turnover a good quality metric

here are a few sub-questions we need to break down to answer before answering this one larger question. These sub-questions include:

Is nursing staff turnover at nursing homes a big problem?

Is nursing staff turnover correlated with quality of care?

Does using nursing staff turnover as a quality metric provide the right incentives?

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OIG Study: HHS Watchdog Probes Enforcement Of Nursing Home Staffing Standards

The inspector general at the Department of Health and Human Services this month launched an examination into federal oversight of skilled nursing facilities amid signs some homes aren’t meeting Medicare’s minimum staffing requirements.

The review comes on the heels of a Kaiser Health News and New York Times investigation that found nearly 1,400 nursing homes report having fewer registered nurses on duty than the Centers for Medicare & Medicaid Services (CMS) requires

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Staffing takes a front seat when driving quality of care

In CMS’s new rating methodology, facilities are rewarded for staffing more RNs — and punished when they don’t have enough. Ratings on the staffing domain are based on two measures: the number of RN hours per resident per day and total nursing hours (combined RN, LPN, and nurse aide hours) per resident per day, all pulled from quarterly Payroll-Based Journal reports

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