Nov 2018 1 Montero Therapy Services Copyright 2018 1 SNF Medicare Part A Training for Therapy Professionals 2018 Course Outline What : New Payment Model coming 10/1/19 for Medicare Part A in the SNF – Patient Driven Payment Model 1 Why Long-standing issues with RUG IV Payment System 2 Details : Key Features of the New Model 3 Impact: How will the new model impact SNF Therapists and MDS Coord? 4 Prepare: How can SNF Therapists and MDS Coordinators prepare 5 Putting the Pieces Together: Discussion and examples of program components 6 Montero Therapy Services Copyright 2018 2 2018
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Nov 2018
1
Montero Therapy Services Copyright 2018 1
SNF Medicare Part A Training for Therapy Professionals
2018
Course Outline
What:
New Payment Model coming 10/1/19 for Medicare Part A in the SNF –Patient Driven Payment Model
1Why
Long-standing issues with RUG IV Payment System
2Details:
Key Features of the New Model
3Impact:
How will the new model impact SNF Therapists and MDS Coord?
4Prepare:
How can SNF Therapists and MDS Coordinators prepare
5Putting the Pieces Together:
Discussion and examples of program components
6
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Objectives
•Participants will identify key changes between the existing RUG-IV Model and the new PDPM Model
Identify
•Participants will gain an understanding of the new Proposed Patient Driven Payment ModelGain
•Participants will calculate a Function Score and Daily Payment Rate based on resident characteristics
Calculate
•Participants will be prepared to identify the new model’s impact on therapy and identify ways to prepare upcoming changes
Prepare
2018
New Payment Model for Medicare Part A SNF
• Major changes ahead based on SNF PPS Final Rule Released August 2018
• Advanced Notice of Proposed Rulemaking (ANPRM) was released in May 2017 identifying a change was coming to SNF Medicare Part A payment structure
• Replace existing case-mix classification methodology “Resource Utilization Groups, Version IV RUG-IV
• Originally thought to be RCS-1
• April 2018 the Proposed Rule was released confirming changes to come; Final Rule August 2018 made only few changes to Proposed Rule
CMS has commented in the Final Rule for at least the last 5 years that there was significant concern regarding the therapy trends in the SNF
The % classifying into the Ultra-High therapy category has increased steadily (reaching >60% of total scores in 2017)
The % receiving just enough therapy to surpass the Ultra-High and Very-High therapy thresholds has also increased (some SNF’s achieved 100% of RU and RV RUGS with exact minutes of 720 and 500 respectively)
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Medicare….On YOUR SIDE?
“We believe the increase in “thresholding” is a strong indication of service provision predicated on financial considerations rather than resident need.” “….Therefore, services which are not specifically tailored to meet the individualized needs and goals of the resident, based on the resident’s condition and the evaluation and judgment of the resident’s clinicians, may not meet [the] definition for covered SNF care, and we believe that internal provider rules should not seek to circumvent the Medicare statute, regulations and policies, or the professional judgment of clinicians.” 2015 SNF PPS FR
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Why Is This Happening?
Years of recommendations and clear data from the OIG
and MedPAC to make a changes
CMS took a stand last May, gave fair warning of a new
payment system and allowed comments for an extended period of time. CMS considered all the
comments and concerns about RCS-1, took them into account and created a new
payment model
Multitude of CMS statements over the years
reiterating that therapy service provision should be
based on the resident’s individual needs
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Just To Be Clear…..
• In the Proposed Rule, CMS is attempting to be crystal clear…
• “To make clear the purpose and intent of replacing the existing RUG-IV system, the model we are proposing in this rule is called the Patient-Driven Payment Model (PDPM).”
Made of 6 independent components, each adding up to a final payment
PT OT SLP NursingNon Therapy
AncillaryNon-Case
Mix
Now based on multiple factors….each determining portion of payment
Not based on therapy volume or therapy minutes
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A Review of PPS RUG-IV
Need understanding of RUG-IV to dispel myths of PDPM
Nursing vs Rehab RUG = Only 1 triumphs and sets payment
Case Mix Maximizes
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A Review of PPS RUG-IV
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FY 2019 Urban
2018
Review of PPS RUG-IV
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Key Features of PDPM
Sets daily Medicare Part A payment rates on factors other than therapy days and minutes
Data from the MDS, starting with the ICD-10 code and category
that supports the SNF Part A stay, are used to classify a resident
Additional MDS data including function, cognition, swallowing
disorders and other clinical diagnoses also contribute to
classifications
Unlike the RUG-IV classification where each resident is only
classified into 1 RUG group based on the MDS, PDPM breaks apart
therapy and nursing to allow for a separate classification for each
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6 Components
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ALL COMPONENTS ADDED TOGETHER = DAILY RATE
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Component 1: Nursing
Nursing is finally “free” from therapy’s grip
66 RUGS to a total of 25 by combining existing groups
Same criteria for each RUG
The method for calculating the ADL score will also change and Section GG items will be added to the mix. Uses Eating, Transfers, Toileting Hygiene, Bed Mobility info.
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Nursing
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Extensive: Trach, Vent, Iso
Special Care High: COPD/Bed; IV; RT
Special Care Low: CP,MS,PD,Tube,Skin
Clinical: O2, Hemi, IV Meds, Pneumonia
Case Mix Group with in each category is determined by GG
Function Score, Depression,
Restorative Nursing Program….and….In general, more
Dependent = Higher CMI
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New Function Score – ADL Score Does Not Determine RUG
ADL Score
• Based on 4 Section G answers
• Determined last character in RUG• Bed Mobility• Transfers• Toileting• Eating
New Function Score
• Will be based on multiple MDS answers from GG on 5 day only• Nursing uses 4
• Eating• Toilet Hygiene• Bed Mob Average• Transfer Ave – Toilet, Bed
• PT/OT use 6• Above +• Oral Hygiene• Walking Average 50, 150
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Function Score Points
Nursing
Independent or Set up =4
Supervision, Touching=3
Partial/Mod Assist=2
Substantial/Max Assist=1
Dependent; Refused; N/A=0
Points assigned to answers in Section GG determine score
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How GG was coded is transcribed into new ADL Score Calculation to determine Functional Score
2018
Component 2: Physical Therapy
PT case mix and payment will be determined by the ICD-
10 code category for SNF admission and the functional
score based on MDS questions in GG
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Physical Therapy
PT case mix and payment will be determined by the ICD-
10 code category for SNF admission and the functional
score based on MDS questions in GG
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Case Mix Group with in each category is determined by GG
Function Score….and….
In general, more Independent =
Higher CMI
2018
Function Score Points
PT / OT
Independent or Set up =4
Supervision, Touching=3
Partial/Mod Assist=2
Substantial/Max Assist=1
Dependent; Refused; N/A=0
Points assigned to answers in Section GG determine score
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Function Score for PT and OT
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How GG was coded is transcribed into new ADL Score Calculation to determine Functional Score
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Function Score: 6 ?’s – Total Ranges 0-24
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0 = Dependent 4 = Independent
Total 0 = More Dependent Function vs Total 24 = Independent Function
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Details: PT and OT Function Score
Replaces ADL Score of RUG-IV for determining case mix category
Function Score factors into case mix score for PT, OT and Nursing
Score derived from MDS questions Section GG
More Dependent does NOT always mean higher CMI
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Physical Therapy
There are a total of 16 potential PT case mix groups as
shown here.
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Physical Therapy
There are a total of 16 potential PT case mix groups as
show here. Each group has a corresponding CMI
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Component 3: Occupational Therapy
OT case mix and payment are determined exactly like PT, however, case mix scores and payment will differ for each category.
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Case Mix Difference Between PT and OT
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Details: PT and OT Payment
Example: $100 per day case mix daily rate:
Day 1-20 = $100 per day
Day 21-27=$98 per day
Day 28-34= $96.04 per day
Day 35-41=$94.12 per
day
Day 42-48= $92.24
Day 49-55= $90.40
Decrease by 2% every 7 days after that
Day 1-20 pays in full
Daily payment for PT and OT will decrease over the course of 100 days
Component 4: Speech TherapySpeech case mix and payment is determined by the ICD-
10 code category for SNF admission, as well as factors
including swallowing disorders, mechanically altered diets,
speech co-morbidities and cognition (all from MDS
answers).
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Speech Therapy
1- Acute Neuro Condition listed by ICD-10 (I8000A)2- SLP Related Co-Morbidity from list in Section I (ie: CVA, Aphasia, Hemi, SL Deficits)3- Cognitive Impairment determined by MDS questions (BIMS – Section C)
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Speech Therapy
1- Mechanically Altered Diet – Answer to MDS Question2- Swallowing Disorder – Answer to MDS Question (K0100 – Loss of liq; Holding; Coughing; Pain…)
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Speech Therapy
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Speech Therapy
Daily Speech rate does NOT decrease over time
(like PT and OT)
Pays in full days 1-100
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Minutes Don’t Matter ??
PT, OT and Speech categories/case-mix are not impacted by the presence or absence of an active therapy program
Pay is the same with therapy vs no therapy!Facilities are paid a daily rate for therapy services even if therapy is not active
Why? CMS expects the SNF to save payment for when therapy services are necessary
Still need Skilled Therapy at least 5 days per week for Medicare Part A coverage
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Component 5: Non-Therapy Ancillary
There is also a case mix category called “Non-Therapy
Ancillary” that will use MDS questions from Section I, K, M
and O to determine a case mix score. This payment is
tripled for the first 3 days of the stay to cover any costs
upfront. Drugs, Medical Supplies, Labs, etc
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Non-Therapy Ancillary Example
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Non-Therapy Ancillary Category
Day 1 – 3 = Daily Rate x 3Day 4-100 = Daily Rate x 1
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Component 6: Non-Case Mix Payment
Non-case mix component
Flat rate
Covers overhead costs such as room/board, laurdry, capital, dietary, etc.
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Details: How Is Payment Derived?
Nursing PT OT SpeechNon-
Therapy Ancillary
Non-Case Mix Flat
Rate
Total Daily Rate
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Details: How Is Payment Derived?
Nursing PT OT SpeechNon-
Therapy Ancillary
Non-Case Mix Flat
Rate
Total Daily Rate
• Payment will be derived from the 5 Day PPS MDS• Score used for duration of 100 days unless stay is interrupted OR resident status changes
warranting a new MDS (IPA)
• For Medicare Part A, significant decrease in the # of MDS’s required = Elimination of the Scheduled Assessments (14,30,60,90) AND the Unscheduled Assessments (SOT, COT, EOT…)
• Data collection of all therapy modes, days and minutes on the DC MDS – accountability!
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Details: How Is Payment Derived?
Nursing PT OT SpeechNon-
Therapy Ancillary
Non-Case Mix Flat
Rate
Total Daily Rate
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If each category = $50 per day, the Total Daily Rate = $300 per day
2018
PDPM Payment
Breakdown
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Sample Payment – Case Example
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Nursing PT OT SpeechNon-
Therapy Ancillary
Non-Case Mix Flat
Rate
Total Daily Rate
=$351.52
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PDPM BreakdownSummary
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How Will PDPM Impact SNF Therapists and MDS Coordinators?
Therapy minutes are no longer driving RUG score
• Staffing
• Look up your SNF’s predicted change
Less MDS assessments, more resident monitoring
for daily changes
Increase in Group and Concurrent??? Limited to
25% of total minutes. 75% will need to be 1 on
1 therapy
Importance of accurate data on 5 day MDS –
Therapy can’t wait until Day 4 for Eval
Less weekend therapy? No holidays?
Outcomes….soon. GG will be tied to $$
2018
What is NOT CHANGING?
Chapter 8 of the Medicare Benefit Policy Manual: All SNF Med A Rule
• This information for this presentation was current at the time it was published. Source documents and links are provided. Due to the frequent change in Medicare policy, participants should verify policy change at the time of study.
• This presentation was prepared to provide general information on the subject material. Participants are encouraged to further review the specific statutes, regulations and other materials for a full understanding of how to utilize this information in practice.
• Montero Therapy Services is available for consulting on specific practice issues or concerns related to this or any other material.