On July 27, 2012, CMS posted the FY 2013 per diem payment rates for skilled nursing facilities (SNFs).  CMS announced that the market basket increase for FY 2013 is 2.5 percent and the productivity adjustment for FY 2013 is 0.7 percent, resulting in a net market basket increase of 1.8 percent.  CMS estimates that this net 1.8 percent increase will result in an additional $670 million to SNFs during FY 2013. In calculating the updated per diem rates, CMS used the full RUG-IV case-mix classification system, which the agency finalized in the FY 2010 SNF prospective payment system (PPS) final rule and fully implemented beginning in FY 2011.  These payment rate updates take effect on October 1, 2012.

CMS implemented various policy changes in FY 2012, including recalibrating the FY 2011 SNF parity adjustment, implementing changes to the MDS 3.0 patient assessment instrument, and allocating group therapy time to pay for group therapy services based on cost and utilization of resources.  CMS has monitored the impact of these changes and discusses its findings in the notice as well. 

The notice will be published in the Federal Register on August 2, 2012.  In the meantime, the display copy may be accessed by clicking here. 

Reporter, Kate Stern, Atlanta, +1 404 572 4661, kstern@kslaw.com.