tci Medicare Compliance & Reimbursement - 2003 Issue 24

Long-Term Care: LONG-TERM CARE PROPOSAL COULD PROVIDE SHORT-TERM HELP

But a new CMS SNF payment policy cut both ways.Skilled nursing facilities would get a payment boost in 2004 under a reimbursement proposal offered up June 10 by the Centers for Medicare & Medicaid Services. But the policy change could have negative consequences in future years, depending on how well CMS estimates health care inflation. In the proposal, which appears in the Federal Register, CMS would add a "forecast error adjustment" to the SNF prospective payment system. Currently, SNF PPS payment rates are based on CMS' forecasted percent change in the market basket, a measure of health care...

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