Medicaid Supplemental Payment Changes Target SNF Revenue

From Modern Healthcare:

“A proposal to ramp up reporting requirements is threatening one of skilled nursing operators’ most significant revenue streams and could dent profitability, analysts said.”

“CMS’ proposed new rule would redefine base and supplemental payments and force states to unbundle reimbursement data as the agency looks to cut down on “shady recycling schemes that drive up taxpayer costs.” This would give CMS’ more latitude to restrict financing mechanisms states use to increase federal matching funds for their Medicaid program and could erode a key funding source for SNFs…If SNFs typically get a 4% to 5% bump in Medicaid payments year over year, driven by higher supplemental payments, it is possible that the growth rates of payments will slow or stop.”

Click here to read the full report from Modern Healthcare