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4/7/09
SNF Value Based Purchasing Demonstration Project:: Open Door Forum Summary and Analysis
SNF Value Based Purchasing Demonstration Project:
Open Door Forum Summary and Analysis
The Centers for Medicare and Medicaid Services held its SNF Open Door Forum this afternoon to discuss the new SNF Value Based Purchasing (“VPB”) Demonstration Project.
This memo does not serve to fully explain the program. Details, including the application, are available at www.nhvbp.com. Applications are due by May 1, 2009.
The goal of the Demonstration Project is to improve resident outcomes and reduce Medicare expenditures, primarily though a reduction in avoidable hospitalizations.
The program is budget neutral, thus the “Payment Pool” will be calculated based on Medicare savings throughout the project term (July 1, 2009 – June 30, 2012).
VPB will analyze data for all Medicare beneficiaries, regardless whether they receive Medicare Part A benefits at anytime.
Facilities will be assigned a performance score based on the following elements:
• Staffing
• Potentially avoidable hospitalizations
• Survey deficiencies
• Resident outcomes
Facilities in the top 20% in terms of overall performance (across all measures) qualify for an incentive payment, as do those in the top 20% in terms of improvement relative to the baseline period. There will be no penalties assessed to lower performing participants.
The selection process is expected to be concluded by early June, when approximately 50 facilities per state will be selected; note that applying does not guarantee selection.
Analysis:
The Preliminary Design Report issued by Abt Associates projected approximately $115,000 in payments to qualifying providers (more for very top performers).
Administratively, the only additional reporting requirement is that participating nursing homes will be required to submit payroll data on a quarterly basis.
Given the absence of risk and the inherent incentive for performance improvement, we feel there are no drawbacks for efficient providers to participate in the Value-Based Purchasing Demonstration Project.
Feel free to contact our office for more details.
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