The Patient-Driven Payment Model (PDPM) was launched on Oct. 1, 2019, so as of this writing, observers have had ample time to see how it is taking shape. Thus far, the Centers for Medicare and Medicaid Services (CMS) has determined that PDPM has not been budget-neutral compared to the last model, as it was intended to be. PDPM is part of the larger, industry-wide shift toward value-based payment systems that reward providers for delivering high-quality care for people in need. While PDPM now requires more tracking and reporting for long-term care (LTC) providers and skilled nursing facilities (SNFs), particularly in terms of ICD-10 coding, the ultimate goal is providing better patient care.
This new reimbursement system was intended to be budget-neutral while shifting from where we’ve been focused (i.e., on therapy volume) to a focus on the patient’s condition. Currently, there are more CMS financial winners than losers under PDPM—specifically:
In October 2019, Medicare rates went up with some help from the non-therapy ancillary (NTA) one-time variable adjustment. The projected rate was $563.00 for October 2019, and the realized reimbursement was $615 per day. We saw a 3% decrease in November 2019 without the one-time variable adjustment. Overall the rates remain up, but organizations are still leaving money on the table in the following areas:
According to online boards and user groups, MDS coordinators still struggle with the transition. Consider:
SNF managers should continue to schedule PDPM trainings, provide current resources and identify outside opportunities whenever available. Examples include:
We also strongly recommend that facilities complete regular in-house audits. It’s critical that you identify your MDS documentation and process gaps before the Centers for Medicare and Medicaid Services (CMS) does. Focus on the areas that have already been identified as targets:
Additionally, don’t forget about QAPI:
Keys to PDPM success:
The past nine months have been a time for learning for providers, as well as for CMS. As both parties continue learning, many more changes will occur along the way. Continued education and access to the latest resources will increase your ongoing success with Medicare reimbursement.
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