CMS Releases FY 2024 Rule for Skilled Nursing Facilities
On April 4, 2023, the Centers for Medicare & Medicaid Services (CMS) issued its proposed rule updating the payment rates used under the prospective payment system (PPS) for skilled nursing facilities (SNFs) for the fiscal year (FY) 2024.
Industry in Context
CLA’s reporting on the economic state of the SNF industry shows occupancy rates are not fully recovered to pre-pandemic levels and will likely not increase to those levels until 2024. Due to workforce shortages, many SNFs are relying on contract nursing. Staffing agencies are charging 22 – 28% higher rates since the beginning of the pandemic. Facilities are watching for CMS’s release of a staffing mandate and they continue to struggle with labor shortages.
According to a CLA study, the SNF industry would need to hire between 58,000 and 191,000 additional full-time equivalents to meet a potential staffing mandate. The financial impact to SNFs for meeting a mandate could result in reduced admissions and reductions in census, negatively impacting residents who need skilled care.
Also included in the proposed rule are proposals for changes to the SNF Quality Reporting Program (QRP) and the SNF Value-Based Purchasing (VBP) Program for 2024 and future years. For more information, download the proposed rule from the Federal Register. Read More...