On July 27, Mark B. McClellan, MD, Ph.D., Administrator for the Centers for Medicare & Medicaid Services (CMS), announced the release of a proposed rule to update payment rates under the skilled nursing facility (SNF) prospective payment system (PPS). This notice includes a 3.1 percent standard annual update for SNF PPS rates for Fiscal Year (FY) 2007. As a result, Medicare payments to nursing homes will increase by approximately $560 million in FY 2007. "These new payment rates reflect our commitment to improving the quality of care in the long-term care setting while maintaining predictability and stability in payments for the nursing home industry," said Dr. McClellan. "They will enable nursing homes and the Medicare program to continue to move forward in providing quality services for patients who need post-acute care." Additionally, the notice includes a discussion of new initiatives aimed at improving the quality of care. These include developing an integrated system of post-acute care payment, encouraging the increased use of health information technology (HIT), assisting beneficiaries in their need to be better informed health care consumers, and accelerating the progress already being made in improving quality of life for nursing home residents. The SNF PPS notice and a press release are available through the links below.
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