CMS proposes $320M nursing home pay rate cut 

CMS is proposing to adjust skilled nursing facility payment rates downward by 4.6 percent, which decreases Medicare payments to facilities by approximately $320 million, it said April 11.

While the 4.6 percent rate decrease amounts to a total of $1.7 billion, it is partially offset by a 3.9 percent, or $1.4 billion, payment boost to the nursing home sector. The proposal comes as part of the agency's 2023 Skilled Nursing Facilities Prospective Payment System proposed rule. 

CMS plans to seek input on establishing minimum staffing requirements for facilities, which will be used in conjunction with a new study being conducted by the agency to determine the "optimal level and type" of staffing needs. The agency is also seeking stakeholder input on a measure examining staff turnover levels in nursing homes for possible inclusion in the Skilled Nursing Facility Value-Based Purchasing Program.

The agency intends to issue proposed rules on a minimum staffing level requirement within a year. 

Read the full proposal here.

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