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CHA DataSuite Releases Analysis of FFY 2023 SNF Prospective Payment System Proposed Rule

For CFOs, reimbursement directors

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CHA DataSuite has issued a hospital-specific analysis of the federal fiscal year (FFY) 2023 Medicare skilled-nursing facility (SNF) prospective payment system (PPS) proposed rule.

The analysis is intended to show providers how Medicare fee-for-service payments will change from FFY 2022 to FFY 2023 based on the policies set forth in the proposed rule. A detailed summary of the proposed rule is available for CHA members. Comments on the proposed rule are due to the Centers for Medicare & Medicaid Services (CMS) by June 10 and can be submitted electronically.

Because the Medicare cost reports have yet to be updated to account for the Patient Driven Payment Model methodology, SNF PPS payments for FFY 2022 are based on FFY 2020 SNF claims sourced from the calendar year 2019-20 SNF standard analytical files limited dataset 100% claims data.

SNF PPS payments for FFY 2023 are calculated by applying all update factors to the FFY 2022 totals. Wage indexes, labor shares, and the per-diem payment rates are from the FFY 2022 final rule and the FFY 2023 proposed rule Federal Registers. SNF value-based purchasing (VBP) adjustments are from the final FFY 2022 SNF VBP performance from Nursing Home Compare and from the FFY 2023 SNF proposed rule.

Changes modeled in this analysis include a market basket update, Affordable Care Act-mandated productivity reduction, forecast error adjustment, wage index budget neutrality, wage index and labor-related share impact, and value-based purchasing year-over-year adjustment.

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