PPS Skilled Nursing Facility (SNF)

Section 4432(a) of the Balanced Budget Act (BBA) of 1997 modified how payment will be made for Medicare skilled nursing facility (SNF) services. Effective with cost reporting periods beginning on or after July 1, 1998, SNFs will no longer be paid on a reasonable cost basis or through low volume prospectively determined rates, but rather on the basis of a prospective payment system (PPS). The PPS payment rates will be adjusted for case mix and geographic variation in wages and will cover all costs of furnishing covered SNF services (routine, ancillary, and capital-related costs).

Regulatory Information



Additional Resources


To see previous years rules and summaries, use the search function.
Or search the Federal Register Website.


WHA Contact:

Brian Potter

Senior Vice President, Finance/Chief Operating Officer

608-274-1820

bpotter@wha.org

 

Joanne Alig

Vice President

Payment Policy and Reform

608-274-1820

jalig@wha.org