The Impact of PDPM on SNF Billing: What You Need to Know
Skilled nursing facilities (SNFs) play a vital role in providing care and rehabilitation services to individuals in need. However, recent changes in the payment structure, particularly with the implementation of the Patient-Driven Payment Model (PDPM), have significantly impacted SNF billing practices.
In this blog, we'll delve into the effects of PDPM on SNF billing, shedding light on how these changes influence the journey of healthcare providers. But before that, let’s give an overview of PDPM in SNF:
Overview of PDPM
PDPM, or the Patient-Driven Payment Model, is a reimbursement model implemented by the Centers for Medicare & Medicaid Services (CMS) for skilled nursing facilities (SNFs) in the United States. It replaced the Resource Utilization Group (RUG-IV) system, which primarily relied on the volume of therapy services provided to determine reimbursement.Under PDPM, reimbursement is based on patient characteristics and needs rather than the volume of therapy services. This shift aims to better align payments with patient care needs and encourage individualized, patient-centered care. PDPM utilizes five case-mix components to determine payment:
- Physical Therapy (PT)
- Occupational Therapy (OT)
- Speech-Language Pathology (SLP)
- Nursing
- Non-therapy ancillary (NTA)
For SNF billing specifically, PDPM has implications for how facilities document and code patient information. Accurate coding of patient characteristics is crucial for appropriate reimbursement under PDPM. SNFs must ensure thorough documentation of patient conditions and need to support the classification of patients into the relevant case-mix components. Let’s have a look at the impact of PDPM on SNF billing:
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Redefining Payment and Quality Measures
According to a study published in the Journal of the American Medical Directors Association, implementing PDPM significantly improved quality measures related to patient outcomes in SNFs.
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Providing Unique Services
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Reducing Administrative Burden
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Improving Payments
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Adjusting Per Diem Payments
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Creating Separate Groups
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Focusing on Patient Factors
Conclusion
Implementing PDPM has significantly changed SNF billing practices, impacting payment structures, quality measures, administrative burdens, and more. By understanding the effects of PDPM on SNF billing, providers can adapt to these changes and continue delivering high-quality, patient-centered care.In addition to the changes brought about by the Patient-Driven Payment Model (PDPM), outsourcing billing services is another option for skilled nursing facilities (SNFs). By outsourcing SNF billing services to 24/7 Medical Billing Services, SNFs can streamline billing processes, ensure accurate reimbursement, and allocate resources more efficiently. Furthermore, outsourcing billing services can lead to cost savings for SNFs by eliminating the need for in-house billing staff and reducing the risk of billing errors or claim denials.
See also: Strategic Impact: How RUG Rates Drive SNF Billing Success