Guest guest Posted October 29, 2011 Report Share Posted October 29, 2011 We provide contract rehab services to a SNF. I am curious if there is any trend in rates charged to facilities going up or down for part A and managed care patients. Thanks for any input Kristie Leverenz, PT Mark Leverenz, OTR/L United Therapy Services, Inc. 7411 112th St Blue Grass, IA 52726 kmlev@... Quote Link to comment Share on other sites More sharing options...
Guest guest Posted October 31, 2011 Report Share Posted October 31, 2011 Kristie There are some interesting conversations going on between contract therapy companies and skilled nursing facilities. The cost of delivering therapy services is increasing so contract therapy companies are asking to increase the rates they charge an SNF. The payment to SNF for Medicare A PPS RUG rates is overall being reduced by 14%. Add to this the MPPR discounting that has implemented on Medicare B rates. So facilities are asking for a proportional rate reduction from their therapy providers. It's important to note that the 14% reduction being quoted is not what a specific facility will experience. Each RUG rate is not being reduced by 14%. Some are being reduced as much as 18% while other RUG rates are actually increasing by 4%. The RUG categories an SNF is likely to use will determine what their experience will be moving forward. We provide our customers with a RUG calculation tool where they insert the number of days they billed each RUG in fiscal year 2011 and it will calculate what they would have received for FY 2012 rates and compares the difference. This is a better predictor of what they are likely to experience. A difficult argument for contract therapy companies is that the RUG rates with the greatest decreases are the Rehab RUG. Facilities are likely to point this out in any contract negotiation. There is a counter argument to this. Many contract providers base their rate on a percentage of the " Therapy Component " of each Rehab RUG. While the overall RUG rate has been reduced you will find that the Therapy Component of those RUG rates has increased 2 - 3%. It is also important to note that the reduction in 2012 rates is a reaction to the inadvertant increase of 2011. Those rates resulted in 17% higher payments to SNF than 2010 even though the prediction was that they would be budget neutral. This means that overall SNF are 3% better than 2010. I doubt that any passed on the 17% increase they received last year. I hope this has answered some of your questions. Feel free to contact me directly if you would like clarification on what I have written or have other questions. Ron Wall Axiom Healthcare Group Ontario, CA To: PTManager From: leverenzm@... Date: Sun, 30 Oct 2011 00:32:20 +0000 Subject: SNF Contract Rehab. Rates We provide contract rehab services to a SNF. I am curious if there is any trend in rates charged to facilities going up or down for part A and managed care patients. Thanks for any input Kristie Leverenz, PT Mark Leverenz, OTR/L United Therapy Services, Inc. 7411 112th St Blue Grass, IA 52726 kmlev@... Quote Link to comment Share on other sites More sharing options...
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