The Centers for Medicare & Medicaid Services (CMS) has released a technical report to provide additional details on the empirical analysis that were considered when developing and finalizing the logistic exchange function that will be used to translate Skilled Nursing Facility (SNF) performance scores into incentive payments for the Skilled Nursing Facility Value-Based Purchasing (SNF VBP) Program. CMS has adopted the logistic exchange function as the method that will be used to translate SNF performance scores into value-based incentive payments beginning in October 2018 (FY 2019).
The Skilled Nursing Facility Value-Based Purchasing (SNF VBP) Program awards incentive payments to SNFs based on their performance on the Program’s measure of readmissions. SNF VBP payment incentives will be included on Medicare Part A claims paid under the SNF Prospective Payment System (PPS) as a single line item on each claim paid during the Fiscal Year (FY); no separate payment will be made. SNF VBP incentive payments do not apply to any other type of claims (such as Medicare Advantage claims, Medicaid claims, or Medicaid managed care claims).
Each SNF’s incentive payment will depend on its performance score, which will be placed in the logistic exchange function to determine the corresponding incentive multiplier. The highest scoring facilities will receive the highest payment incentives, and the lowest scoring facilities will receive the lowest payment incentives, as required by statute. CMS provides confidential feedback reports to SNFs on a quarterly and annual basis. Quarterly supplemental workbooks containing patient-level data are provided for quality improvement purposes. SNFs will also receive two annual reports; one report containing a full performance period and their measure score, and the second report containing the SNF performance score, rank, and payment incentive to be applied to Medicare claims in the upcoming fiscal year. SNFs can access all reports through Quality Improvement Evaluation System (QIES) Certification and Survey Provider Enhanced Reporting (CASPER) system.