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.

  • 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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  • 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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  • IPA Algorithm Tool

    By AANAC - October 16, 2019
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  • Q&A: How do I capture that therapy treatment since the IPA does not ask any skilled therapy questions?

    By Jennifer Labay, RN, RAC-MT, RAC-MTA - October 16, 2019
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  • Triple Check Your PDPM Transition

    By Jessie McGill, RN, RAC-MTA - October 02, 2019

    The transition from the RUG-IV to the Patient-Driven Payment Model (PDPM), was a hard transition. SNFs followed RUG-IV PPS scheduling and rules through September 30 and then, on October 1, they began PDPM. However, there is still a transition process that must be followed, and nurse assessment coordinators (NACs) need to fully understand all the requirements. NACs also need to double check all payer types and assessment reference dates (ARDs) and ensure that, by the end of October 7, the facility has completed all steps the process requires. Lastly, NACs may want to consider completing a quick triple check or a billing review to ensure all the conditions of Medicare billing have been met before the end of the transition. While the triple check process is typically reserved for reviewing the previous month’s claims, completing an expedited check by October 7, before the end of the transition, can help reduce the risk of payment penalties. Here are three key steps to a successful transition: 

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  • RAI Manual v1.17.1 Changes Include New Modification Rule

    By Caralyn Davis, Staff Writer - October 02, 2019

    In addition to updating the coding instructions for MDS item I0020B (ICD Code/Resident’s Primary Medical Condition), the Centers for Medicare & Medicaid Services (CMS) made several other changes to version 1.17.1 of the Long-Term Care Facility Resident Assessment Instrument 3.0 User’s Manual compared to the draft version 1.17. Most were expected given the updated presentations CMS officials gave at the August 13 – 14 Skilled Nursing Facility Quality Reporting Program (SNF QRP) training event, as well as the finalized requirements in the Fiscal Year (FY) 2020 Skilled Nursing Facility Prospective Payment System (SNF PPS) Final Rule. These included updates to the definition of an interruption window and changes to the group therapy coding instructions. However, there were also some new updates. For example, CMS established a new 10/01/2019 Cross-Over Rule as part of its MDS modification policy.

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    By AANAC - October 02, 2019
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  • Q&A: Do the OBRA assessment schedules stay the same or does it all switch to just one assessment period for the whole stay unless we do the Interim Payment Assessment (IPA)?

    By Carol Maher, RN-BC, CPC, RAC-MT, RAC-MTA - October 02, 2019
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  • RAI Manual v1.17.1 Update Raises Acute ICD-10 Code Questions

    By Caralyn Davis, Staff Writer - September 25, 2019

    Last week, the Centers for Medicare & Medicaid Services (CMS) released the long-awaited version 1.17.1 of the Long-Term Care Facility Resident Assessment Instrument 3.0 User’s Manual. One change from the draft version 1.17 manual highlights some ongoing confusion about how to code ICD-10-CM diagnosis codes in MDS items I0020B (ICD Code/Resident’s Primary Medical Condition) and I8000 (Additional Active Diagnoses) to ensure accurate case-mix classification in the Patient-Driven Payment Model (PDPM).

    The ICD-10 code entered in I0020B determines a Part A resident’s default primary diagnosis clinical category for the physical therapy (PT), occupational therapy (OT), and speech-language pathology (SLP) payment components under PDPM. In addition, ICD-10 codes entered in I8000 determine whether the resident qualifies for certain comorbidities under the SLP component (identified in Table 14, “SLP-Related Comorbidities,” in the PDPM Calculation Worksheet for SNFs section of chapter 6 in the RAI User’s Manual) or the nontherapy ancillaries (NTA) component (identified in Table 16, “NTA Comorbidity Score Calculation”).

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  • MDS Items Impacting Reimbursement for RUG-IV, PDPM, and SNF QRP

    By AANAC - September 25, 2019
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  • PDPM Case-Mix Group Conversion to HIPPS Characters Tool

    By AANAC - September 25, 2019
    Getting ready for PDPM? Check out AANAC's new PDPM Case-Mix Group Conversion to HIPPS Characters tool.
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  • Uncomplicating the Interrupted Stay Policy

    By Jessie McGill, RN, RAC-MT, RAC-MTA - September 24, 2019

    SNFs are in the final stage of preparation for Patient-Driven Payment Model (PDPM) implementation, but alongside the payment model’s introduction, new policies are being introduced that add layers of complexity that nurse assessment coordinators (NACs) must master this fall. For example, the new Interrupted Stay Policy adds a whole new critical thinking process to what has been a simplified PPS schedule. However, the Interrupted Stay Policy does not need to cause anxiety—it just needs to be better understood.  Here are seven tips to uncomplicate the Interrupted Stay Policy:

    1.       Understand the two criteria of the Interrupted Stay Policy.

    The Interrupted Stay Policy essentially combines multiple SNF PPS stays that are separated by less than three days into one stay when the resident meets both of the following criteria:

    1.       Resident returns to the same skilled nursing facility (SNF), and

    2.       Returns by 11:59 pm of the third calendar day

    The Interruption Stay Policy also introduces the concept of the “interruption window,” which begins with the calendar day of discharge and includes the two calendar days immediately following. If the resident’s Medicare stay ends, and the resident remains in the facility with benefit days remaining, then the interruption window begins on the first non-covered day and includes the next two calendar days.

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