2013 will be a good year for Nursing Home Facilities! This is after the Centers for Medicare & Medicaid Services (CMS – a US government agency) posted news that the Federal government decided to raise Medicare payment to nursing homes by 1.8%. The formal announcement of CMS regarding this matter, Fiscal Year 2013 Skilled Nursing Facility Prospective Payment System can be read at Federal Register August 2 post.
Nursing Home Facilities Cost
In this report, the cumulative $670 million increase will take effect on October 1, 2012. This news is in contrast to what the providers were expecting. Providers are actually concerned for possible freeze or reduction in Prospective Payment System rates in Fiscal year 2013. Mark Parkinson, the president and CEO of the American Health Care Association said that this update to Medicare payments is welcome news to skilled nursing providers after their years of reimbursement volatility. He stated also that AHCA appreciates CMS’ balanced approach to this year’s Medicare payment system.
This news update of Medicare payments thrilled the skilled nursing providers. They are glad that the fiscal year 2013 market basket index shows changes in rates. The 1.8% payment rates is said to be the net as the FY 2013 market basket increase factor is 2.5% minus the Multifactor Productively (MFP) of 0.7% according to CMS data. However, SNF PPS rate schedules will vary depending on region. It is said to range from 0.3% to 2.7%.