MedPAC will recommend site-neutral payments

The Medicare Payment Advisory Commission has decided to recommend a site-neutral policy, under which payments between inpatient rehabilitation facilities and skilled nursing facilities for certain post-acute services would be eliminated, according to a report by McKnight's Long-Term Care News.

It is anticipated the policy would lead to a rise in patient volume in skilled nursing facilities and would result in reduced payments to inpatient rehabilitation facilities, according to the report. The report includes estimates that were presented during Thursday's MedPAC meeting, which show that site-neutral payments would mean $1 billion to $5 billion in savings for Medicare over five years.

Skilled nursing interest groups have come out in favor of the proposed policy, according to the report. However, on its website, the Coalition to Preserve Rehabilitationa group that represents leading consumer, disability, and clinician organizations — said it was disappointed in MedPAC's decision and "believes this policy will inappropriately divert patients who need inpatient hospital rehabilitation to less intensive settings such as nursing homes based on their diagnosis, not based on their individual clinical needs."

The next step is for MedPAC to formally recommend the policy to Congress, according to the report.

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