A new Medicare payment program, Skilled Nursing Facility Value-Based Purchasing Program (SNF VBP), has penalized three-fourths of nursing home facilities in Kentucky. This program is part of an effort by the Centers for Medicare and Medicaid Services (CMS) to reimburse medical providers based on the value or outcomes of the care they provide to patients.
The new program, which was created in 2014 by Congress, will impact payments made in federal fiscal 2019. It aims to encourage facilities to reduce hospital readmission rates by assigning facilities increases or reductions in Medicare payment based on the changes in how often skilled-nursing facility patients were readmitted to a hospital within 30 days after being discharged to a nursing home facility.
Depending on the outcomes, facilities could receive up to a 1.64 percent bonus to its Medicare payments or be penalized with a two percent reduction.
According to CMS, the program evaluates hospital readmission measures, and the facilities receive a performance score based on their individual performance and a score based on their comparison to other facilities in the country. Confidential quarterly and annual reports are provided. Facilities receive payment incentives or penalties based on their performance.
The percentage of skilled-nursing facilities in Kentucky receiving a bonus almost is in line with the national figures. The Louisville-area facilities fared a little bit better. Nationally, 26 percent of facilities will receive a bonus. In Kentucky, only 21.6 percent of facilities are receiving the same bonus; however, 30.2 percent of the Louisville-area are being given the bonus. The following four Louisville-area facilities are to receive the maximum bonus:
- Nazareth Home, 2000 Newburg Road
- The Episcopal Church Home, 7504 West Road
- Providence Louisville East Post Acute, 4200 Browns Lane
- Nazareth Home Clifton, 2120 Payne Street
The numbers of facilities who will either see no change or will face a penalty is significantly higher. Nationally, 74 percent fall into this category. In Kentucky, 78.4 percent of facilities will either see no change or be forced to deal with the penalty. In Louisville, however, that percentage is only 69.8. The following fourteen facilities in Kentucky are receiving the maximum penalty:
- Highlands Health and Rehabilitation Center, 1705 Stevens Avenue
- Franciscan Health Care center, 3625 Fern Valley Road
- Signature Healthcare at Jefferson manor Rehab & Wellness Center, 1801 Lynn Way
- Cherokee Park Rehabilitation, 2100 Millvale Road
- Jeffersontown Rehabilitation, 3500 Good Samaritan Way
- Friendship Health and Rehabilitation, 7400 Friendship Drive
- Signature Healthcare at Summerfield Rehab & Wellness Center, 1877 Farnsley Road
- Regis Woods, 4604 Lowe Road
- Signature Healthcare at Rockford Rehab & Wellness, 4700 Quinn Drive
- Signature Healthcare of South Louisville, 1120 Cristland Road
- Diversicare of Seneca Place, 3526 Dutchmans Lane
- Park Terrance Health Campus, 9700 Stonestreet Road
- Westport Place Health Campus, 4247 Westport Road
- Christian Health Center – West, Inc, 1015 West Magazine Street