Patient-Driven Payment Model (PDPM)

The Patient-Drive Payment Model (PDPM) is here, and AANAC will continue to help you through the transition. Visit this page frequently for new tools, education, and resources for ongoing success under PDPM.

  • SNF QRP QMs: NACs Should Review ‘The Report Card’ for PDPM

    By Caralyn Davis, Staff Writer - December 04, 2019

    The Patient-Driven Payment Model (PDPM) under the Skilled Nursing Facility Prospective Payment System (SNF PPS) pushes providers to implement value-driven care, which gives added significance to the Skilled Nursing Facility Quality Reporting Program (SNF QRP) quality measures (QMs), says Maureen McCarthy, BS, RN, RAC-MTA, RAC-MT, DNS-MT, QCP-MT, president/CEO of Celtic Consulting in Torrington, CT.


    “The SNF QRP QMs are now the report card for PDPM,” she explains. “The Centers for Medicare & Medicaid Services (CMS) has made it clear that the agency will be watching quality of care throughout PDPM implementation. If your care model changes and your quality goes down, you are likely to be audited. Nurse assessment coordinators (NACs) and any other interdisciplinary team (IDT) members who complete the MDS need to be mindful as to how that MDS data will impact not only payment but also quality, especially as more QMs continue to be added to the program.”

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  • NACs Need to Know: 5 Key Medicare Part A Requirements That Haven’t Changed Under PDPM

    By Caralyn Davis, Staff Writer - December 04, 2019

    The nurse assessment coordinator (NAC) often handles the entire Medicare program in the facility, from managing the PPS schedule to leading the skilled coverage decision. With PDPM in full swing, a lot seems to have changed, but some things have not.


    “The implementation of the Patient-Driven Payment Model (PDPM) changed the payment system used for traditional Part A residents,” says Suzy Harvey, RN-BC, RAC-CT, managing consultant at BKD in Springfield, MO. “It did not change the coverage policies for skilled services.”

    Key requirements that remain in place—and that NACs need to know about—include the following:

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  • Q&A: Is there a simple way to know which ICD-10 codes should be used to qualify for immune disorders in the NTA component?

    By Jennifer LaBay, RN, RAC-MT, RAC-MTA, CRC - December 04, 2019
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  • jRAVEN 1.7.2 Free MDS Submission Software Updated (12/19)

    By CMS - December 04, 2019

    jRAVEN (version 1.7.2) is now available for download which contains the following updates:  

    • A defect has been corrected that was causing the HIPPS score that is calculated in jRAVEN to not match the score calculated by the Submission System
    • Changes in support of the MDS Data Specifications Errata V3.00.3
    • The new MDS VUT, version 3.2.0, also updated in support of the Errata V3.00.3
    • All enhancements included with jRAVEN V1.7.0 & V1.7.1:
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  • MDS 3.0 Provider User's Guide Updated, Including Validation Rpt Error Messages (12/19)

    By QTSO - December 04, 2019
    Key information about how to submit MDS files and how to obtain and understand error messages on initial and final validation reports. 
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  • Q&A: Why is our coding for “IV feeding – While a Resident” not reflected in our NTA score?

    By Jessie McGill, RN, RAC-MT, RAC-MTA - November 25, 2019
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  • Q&A: How should diagnoses be listed on the UB-04 claim?

    By Jennifer LaBay, RN, RAC-MT, RAC-MTA, CRC - November 25, 2019
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  • Are Therapy Changes Putting Daily Skilled Services at Risk?

    By Caralyn Davis, Staff Writer - November 13, 2019

    The October 1 implementation of the Patient-Driven Payment Model (PDPM) under the Skilled Nursing Facility Prospective Payment System (SNF PPS) for traditional fee-for-service Medicare Part A residents brought quick changes to therapy provision among some providers. Led by Modern Healthcare, multiple news publications reported nationwide lay-offs of therapists and therapy assistants, as well as corporate mandates to provide group or concurrent therapy or to provide a set number of therapy minutes per SNF resident—without regard for a therapist’s clinical judgment of each resident’s individual needs.


    The situation is so alarming to therapists that the American Physical Therapy Association (APTA), the American Speech-Language-Hearing Association (ASLHA), the National Association for the Support of Long-term Care (NASL), and the American Occupational Therapy Association (AOTA) banded together to issue a Compliance Statement to help therapists navigate the process for reporting compliance concerns. These organizations also are working directly with the Centers for Medicare & Medicaid Services (CMS) to identify troubling trends, as evidenced by the AOTA’s October 17 statement, An Important Message About PDPM From AOTA.

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  • TIP: CMS Provides Update on Skilled Nursing Facility (SNF) Claims

    By AANAC - November 13, 2019
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  • Q&A: Can the facility count services that were provided in the ER prior to the resident being admitted inpatient as "while in facility" if they were to complete an IPA upon return?

    By Scott Heichel, RN, CIC, RAC-MT, DNS-CT, QCP - November 13, 2019
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  • Q&A: Is there still a requirement for a five times a week therapy frequency for Medicare?

    By Jennifer LaBay RN, RAC-MT, RAC-MTA, CRC - November 13, 2019
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  • Final MDS 3.0 Data Specs for Oct. 1, 2019 Implementation Plus Errata (11/19)

    By CMS - November 12, 2019

    The FINAL version (V3.00.1) of the MDS 3.0 Data Specifications is effective October 1, 2019. In November 2019, an updated errata (V3.00.3) was posted for the FINAL version (v3.00.1) of the MDS 3.0 Data Specifications, currently in production. Two issues were identified. One edit, -3941, will be deleted, and one edit, -3965, will be added. These changes will go into production on December 3, 2019. Once in production, these two changes will be retroactive, applying to all assessments with target dates on or after October 1, 2019.

    In addition,  V1.04.0 of the MDS 3.0 CAT Specifications  is effective as of October 1, 2019.
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  • CMS Updates SNF Medical Review Process for PDPM )11/19)

    By CMS - November 11, 2019

    SUBJECT: Updates to the Medical Review Instructions Related to Skilled Nursing Facilities (SNF)

    I. SUMMARY OF CHANGES: The purpose of this Change Request (CR) is to ensure the medical review instructions in Publication (Pub.) 100-08 align with the regulatory updates issued in final rule CMS-1696-F that created the Patient Driven Payment Model (PDPM), which replaces the prior Resource Utilization Group (RUG) classification system, effective October 1, 2019.

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  • CMS Implements SNF Claims Hold (11/19)

    By CMS - November 06, 2019

    As CMS has undertaken the implementation of the Patient Driven Payment Model (PDPM), we are holding a limited number of Skilled Nursing Facility (SNF) claims while we make further refinements to our claims processing system.


    PDPM is a historic reform of the SNF prospective payment system. PDPM focuses on the patient’s condition and resulting care needs rather than on the amount of care provided in order to determine Medicare payment. PDPM was effective on October 1, 2019.


    Specifically, CMS is holding claims with:

    • Dates of service October 1, 2019 or later and
    • Type of Bill (TOB) inpatient services (21X) and swing bed services (18X) subject to SNF Patient Driven Payment Model (PDPM) and
    • Multiple line items, Health Insurance Prospective Payment System (HIPPS) codes, with different rate codes (revenue code 0022).


    Typically, SNFs bill these claims on monthly cycles. Claims with single HIPPS codes were previously being held but are now being released for processing. We anticipate releasing the remaining held claims in late November, once CMS completes systems testing to ensure accurate and timely payment. As of November 1, less than 50 claims are being held.


    In addition, we underpaid some SNF inpatient services (21X) and swing bed services (18X) claims for dates of service in October 2019 with a single line item, single HIPPS code. We are automatically reprocessing those claims; no provider action is needed.

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  • BMI Plays a Key Role From Reimbursement to Care Planning

    By Caralyn Davis, Staff Writer - October 16, 2019

    As a screening tool to identify potential weight problems for adults, body mass index (BMI) has always been important to document, but it gained new importance as a reimbursement factor for Medicare Part A residents under the Patient-Driven Payment Model (PDPM). Here’s what nurse assessment coordinators (NACs) need to know about BMI:


    Learn the NTA impact for PDPM

    “Residents who are morbidly obese may require a higher degree of nursing effort and skilled nursing care. Likewise, residents at the other end of the scale who are at risk for malnutrition also require more skilled nursing care,” says Pam Duchene, PhD, APRN-BC, NEA, FACHE, RAC-MT, DNS-CT, QCP, vice president of education and training for Harmony Healthcare International in Topsfield, MA.

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