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Fiscal Year (FY) 2023 Skilled Facility Prospective Payment System Final Rule (CMS 1765-F)

CMS issued the final rule that updates Medicare payment policies and rates for SNFs for FY 2023. Key provisions included:

•     A 2.7% increase to base rates.This resulted from a 5.1% update to rates, including a 3.9% SNF market basket increase plus a 1.5% market basket forecast error adjustment less a .3% productivity adjustment, and a negative 2.3% recalibrated parity adjustment.
•     CMS finalized the recalibration of the PDPM parity adjustment factor of 4.6%, to be phased-in over a 2-year period; 2.3% in FY 2023 and 2.3% in FY 2024.
•     CMS finalized a 5% cap on annual wage index decreases to smooth year-to-year changes in provider's wage index payments.
•     PDPM ICD-10 Code Mappings updates
•     SNF QRP - a new process measure added, Influenza Vaccination Coverage among Healthcare Personnel, to begin with FY 2024 SNF QRP. SNFs will submit the measure data through the CDC National Healthcare Safety Network with an initial data submission period from October 1, 2022 through March 31, 2023.
•     CMS revised the compliance date for certain SNF QRP Requirements, including the Transfer of Health Information measures and certain standardized patient assessment data elements to October 1 ,2023.
•     SNF VBP - performance scores have been suppressed one more year. Performance data will be reported publicly but will not affect payment
•     SNF VBP - Several new measures will be added beginning with FY 2026.
•     Updates to Requirements for Participation for LTC Facilities including updates to the physical environment requirements and changes to the qualification requirements for the director of food and nutrition services. See rule for details.

Click here to see the final rule.

To receive your final FY 2023 Medicare rates contact one of our accountants today. Call us at (270) 726-4033 or email us at: accountants@hargisandassociates.com

Rhonda Houchens, Director of Operations