The highlight of the SNF Final Rule for FY 2022 includes an increase of 1.2% in Medicare Part A payments. The new rule will inject $410 million in the form of PDPM rate changes to Skilled Nursing Facilities beginning on October 1, 2021.

CMS has traditionally adopted a “budget neutral” approach. However, they have acknowledged that the COVID-19 public health emergency (PHE) could have affected the data used to perform their analyses.

For complete details on the Fiscal Year (FY) 2022 Skilled Nursing Facility (SNF) Prospective Payment System (PPS) Final Rule (CMS-1746-F), follow the link below.

Skilled Nursing Facility PPS Final Rule.

It is likely that the issue of recalibrating Medicare Part A PDPM reimbursement rates will rise again in the future. This could represent a serious hurdle for SNF operators to overcome.

In addition, the Final Rule also updates metrics used in the SNF Quality Reporting Program. SNFs that fail to meet the reporting requirements for any of the new metrics could see a 2% reduction in their annual update.