August 23, 2021
Is Your SNF Prepared for Mandatory Bundles?
Time and again, skilled nursing facilities (SNFs) have proved their ability to manage change and shifting industry dynamics. There is no better example of this than how they navigated the COVID-19 pandemic and embraced telemedicine to improve safety, resident care, and operations. Now another sea change is on the way – mandatory payment bundles for hospitals.
Last year, CMS announced that bundled payments, which have, up to now, been voluntary, will become mandatory for hospitals beginning in 2023. Bundled payments replace hospital fee-for-service billing and incentivize organizations to reduce costs, length of stay, and hospital readmissions, without compromising the quality of care patients receive. Under mandatory bundles, hospitals will be required to accept a fixed payment (target price) for all services around a 90-day episode of care triggered by an acute care hospitalization. For most hospitals, this could mean a seven to eight-figure upside opportunity and comparable downside risk. While the details and specific timing remain unclear, one thing is certain – hospitals will be looking to develop indispensable partnerships with SNFs prepared for mandatory bundles and aligned with value-based care.
Mandatory bundles will certainly raise the stakes for skilled nursing providers, bringing great opportunity for those who adapt. Prepare now for these changes and consider partnering with an organization like Sound Physicians. With 20 years of experience reducing costs and improving outcomes for their hospital partners in 40+ states, Sound is helping hundreds of innovative, skilled nursing providers align to a value-based care model by reducing unnecessary hospital readmissions.
If you want to get ahead of the curve and prepare your SNF for the impact of mandatory bundles, here are five recommendations from Sound Physicians.
- Create a clinical strategy to care for higher-acuity residents
- Develop a proactive strategy to manage emergency department transfers
- Increase physician engagement – 24/7
- Partner with home health agencies with similar strategies
- Share data with your hospital partners
Click here to learn more about our five recommendations.