Pay Increase for Industry

In April 2021, CMS announced that it would recalibrate PDPM pay rates.  Regulators announced in April 2021 that aggregate spending under the new model was unintentionally 5.3%, or $1.7 billion, higher than what it would have been under the old Resource Utilization Groups model.

Last week, CMS published its final rule on Medicare reimbursements for long term care facilities. The agency announced a 2.7% increase, or approximately $904 million hike, to nursing home Medicare pay rates for fiscal 2023. This reflects a $1.7 billion increase resulting from a 5.1% bump to the payment rates for SNFs.  That includes a 3.9% SNF market basket increase, a 1.5 percentage point market basket forecast error adjustment and less than a 0.3 percentage point productivity adjustment.

A fact sheet on the new rule can be found on the CMS website.