Nursing homes would see an additional $997 million in Medicare payments, a 2.8% increase, in fiscal year 2026 under a proposed rate hike announced Friday by the Centers for Medicare & Medicaid Services.
But proposed changes in the nursing home Value Based Purchasing program would reduce payments to facilities by roughly $208.4 million in fiscal year 2026 and by nearly $208 million in FY 2027, said the proposal (RIN: 0938-AV47).
The nursing home VBP program is a pay-for-performance program. By statute, the CMS withholds 2% of nursing homes’ traditional Medicare “Part A” hospital benefit payments to fund the ...
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