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CHA Releases Summary of CY 2021 Physician Fee Schedule Proposed Rule

For CFOs, Reimbursement Directors

CHA DataSuite issued two hospital-specific analyses of federal fiscal year (FFY) 2021 Medicare skilled-nursing facility (SNF) and inpatient rehabilitation facility prospective payment system (PPS) final rule. The analyses are intended to show providers how Medicare fee-for-service payments will change from FFY 2020 to FFY 2021 based on the policies adopted in the final rule. 

SNF PPS Final Rule FFY 2021 

Changes modeled in this analysis includes market basket update, Affordable Care Act-mandated productivity reduction, wage index budget neutrality, rural status change impact, wage index and labor-related share impact, Office of Management and Budget delineation update, 5% wage index reduction stop loss, and value-based purchasing year-over-year adjustment.  

As a reminder, in the FFY 2020 analyses we released last year, revenues were able to be estimated using the impact from moving from the RUG-IV program to Patient Driven Payment Model given in the impact file from the Centers for Medicare & Medicaid Services. Providers that were not included in that impact file were still able to have their revenue estimated based on cost report data. SNF PPS payments for FFY 2021 are calculated by applying all update factors to the FFY 2020 impact file total.  

For more detail information, see the analysis description

IRF PPS Final Rule FFY 2021 

Changes modeled in this analysis include the market basket update, Affordable Care Act-mandated market basket reductions, budget neutrality adjustments, wage index and labor share updates, case-mix group updates, and change in rural status. 

For more detailed information, see the analysis description