Medicare payments to skilled nursing facilities would increase by an estimated $690 million in FY08 according to a proposed rule issued by the Centers for Medicare and Medicaid Services. The 3.3 percent increase would affect payment rates to nursing facilities that furnish certain skilled nursing and rehabilitation care to Medicare beneficiaries recovering from serious health problems.
Under Medicare’s skilled nursing facility prospective payment system prospective payment system, each facility is paid a daily rate based on the relative needs of individual Medicare patients, adjusted for local labor costs. The daily rate covers the costs of furnishing all covered nursing facility services, including routine services such as room, board, nursing services, and some medical supplies together with related costs such as therapies, drugs and lab services; and capital costs including land, buildings and equipment.
The proposed rule will be available soon on the CMS web site. Public comments on the proposal will be accepted until June 29, 2007.
