In October 2019, the new skilled nursing payment system, PDPM (Patient-Driven Payment Model) – a program that is designed to ensure patients receive the therapy best suited for their needs and goals -will go into effect. With the new system, group and concurrent therapy services will incur a 25% cap according to the Centers for Medicare & Medicaid Services (CMS).
Industry leaders, including Mark Parkinson, the president and CEO of American Health Care Association (AHCA), have voiced their concerns about this new payment model. “They have created a system that is heavily focused on therapy, and then are complaining about the inevitable results it would create”, said Parkinson in an interview with Skilled Nursing New.
However, the group and concurrent therapy cap may work out to be a boon for skilled nursing providers. Taylor Pickett of Omega Healthcare Investors said “I think operating margins are likely to improve just because of the ability to do 25% group and concurrent therapy. So we’ll see therapy costs drop and revenue remain relatively neutral.” Pickett optimistically predicts that most people will benefit from the new system in the long run.
Read more about the PDPM and how it will affect your therapy department at http://bit.ly/2wuOMK1