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September 28, 2018 Article 1 min read
Have you quantified how the new PDPM will affect your bottom line? Our financial impact assessment can help you understand the impact, be proactive, and position your organization for success.

Image of nurse taking patient's blood pressure, SNF PDPM financial impact assessment.You already know change is coming to SNF reimbursement. The primary reason behind the comprehensive shift to a Patient-Driven Payment Model (PDPM) for Medicare Part-A services is to more accurately align provider reimbursement with the clinical needs of a resident rather than therapy delivery. As a result, some providers will need to make adjustments to avoid taking a significant hit as payment factors shift.

The first step to making those adjustments is to quantify how the new PDPM will affect your bottom line.

We can help you prepare.

Our collaborative process and comprehensive analysis begins with financial projections based on your actual data in three key areas:

  1. Rate under RUGs vs. the new PDPM reimbursement methodology rate
  2. How the new rate tapering, in conjunction with length of stay, will impact reimbursement
  3. A review of summary reference tables for the five rate components used to calculate reimbursement.

The financial impact assessment we've developed will provide you with an analysis in these important areas, including a summary of key areas of focus and actionable next steps. In addition, our PDPM Readiness Checklist can help you prepare for the Oct. 1, 2019, implementation date.

Here are three examples — using sample data — of how the analysis for a SNF will look:

  1. Your rate under RUGs vs. the new PDPM reimbursement methodology rate using your organization’s actual MDS data. Example output:

    Chart showing PPS versus PDPM reimbursement comparison, SNF PDPM financial impact assessment.
  2. How the new rate tapering, in conjunction with length of stay, will impact reimbursement. Example output:     Chart showing resident actual length of stay cost breakdown over projected periods, SNF PDPM financial impact assessment.
  3. Review of summary reference tables for each of the five rate components used to calculate reimbursement under PDPM. Example output:

Chart showing the patient-driven payment model, non-therapy ancillary (NTA), SNF PDPM financial impact assessment.

Use our PDPM financial impact assessment to help you quantify how the new PDPM will affect your bottom line. Get started now. Contact us to discuss an engagement to analyze your organization’s financial impact.