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Azar Touts New Skilled Nursing Facility Payment Model

Posted on Wednesday, June 6, 2018 7:31 PM

On Tuesday, Health and Human Services Secretary Alex Azar touted the new payment model for skilled nursing facilities in a speech before a prominent trade group. 

The new Patient-Driven Payment Model (PDPM), achieves the dual goal of overhauling Medicare and Medicaid while easing regulatory burdens on providers.

“The PDPM would be a significant shift in how SNFs are paid, and, we believe, a very positive one,” Azar said. “It reflects our belief that we should not be paying providers in ways that drive overuse of services. Instead, we should pay providers based on the patients they treat, while assessing quality fairly.”

But Azar also issued a warning for companies that were more reluctant to get on board.

“Some of the necessary changes won’t be so comfortable for entrenched players,” he said. “But those who are interested in working with us to build a new system will have unprecedented opportunities at hand.”

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