Patient-Driven Payment Model

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Patient-Driven Model

Why a New System? Top 10 RUGs in 2015 Comprise 90% of SNF Days and 92% of SNF s RUG RUG Description Total Days 2015 Distinct Beneficiaries Per RUG Per Day Per Beneficiary Total Percent Total Days Percent Total RUB Ultra-High Rehab - ADL 6-10 17,180,364 691,406 $505 $12,543 $8,672,521,672 25.9% 31.5% RUC Ultra-High Rehab - ADL 11-16 12,390,791 450,902 $493 $13,549 $6,109,148,624 18.7% 22.2% RUA Ultra-High Rehab - ADL 0-5 8,469,027 433,600 $402 $7,861 $3,408,497,106 12.8% 12.4% RVB Very-High Rehab - ADL 6-10 5,780,737 345,232 $343 $5,750 $1,985,100,869 8.7% 7.2% RVC Very-High Rehab - ADL 11-16 5,489,783 288,253 $396 $7,539 $2,173,072,574 8.3% 7.9% RVA Very-High Rehab - ADL 0-5 4,040,428 261,086 $339 $5,253 $1,371,439,036 6.1% 5.0% RHC High Rehab - ADL 11-16 1,995,681 127,628 $325 $5,077 $647,923,927 3.0% 2.4% RHB High Rehab - ADL 6-10 1,638,022 120,859 $290 $3,929 $474,802,692 2.5% 1.7% RHA High Rehab - ADL 0-5 1,327,023 101,126 $248 $3,255 $329,199,346 2.0% 1.2% RMC Medium Rehab - ADL 11-16 993,935 68,932 $266 $3,836 $264,416,664 1.5% 1.0% 57% 81% 86% Source: AHCA Analysis of CMS Skilled Nursing Facility Public Use File

CMS Design Criteria CMS Framework Element Basis for System Development Remain within Existing Statutory Authority Use Existing Resources Develop a Readily Implementable System October 1, 2019 Shifts Away from Therapy as Basis for Average Per Diem Cost Report Data Claims, MDS 2006 Nursing Research Remains in Per Diem Builds on Existing Tools MDS, Claims based on Patient Characteristics Minutes only Counted at Discharge

RCS-1 Becomes PDPM RCS-1 PDPM

PDPM Preliminary Detail

Components Snapshot Component PT OT SLP Nursing NTAS Patient Characteristics Primary reason for SNF Care Functional Status Section GG Early and Late Loss Cognitive Status DROPPED Primary reason for SNF Care Functional Status Section GG Early and Late Loss Cognitive Status DROPPED Primary reason for SNF care Cognitive status Presence of swallowing disorder or mechanically altered diet Other SLP- Related comorbidities Clinical information from SNF stay Functional Status Section GG Early and Late Loss Extensive Services Received Presence of depression Restorative nursing services received Comorbiditi es present Extensive Services received Per Diem Structure decreases - after day 20 - decreases - after day 20 - Average Daily No Tapering Average Daily No Tapering decreases - after day 3 - Case Mix Groups 16 16 12 25 6

PT/OT Case Mix Groups

SLP Case Mix Groups

Nursing Case Mix Groups Characteristic RUG-IV Nursing RUG Extensive Services Clinical Conditions Depression Description Collapsed RUGs by ADL score bins Tracheostomy & Vent (only two CMGs) Comatose, Septicemia, Respiratory Therapy Radiation Therapy or Dialysis Pneumonia, Surgical Wounds, Burns Behavioral or Cognitive Symptoms Assistance with Daily Living and General Supervision Yes or No # of Restorative Nursing Services 0-1 OR 2 or More GG-Based Functional Score 0-5, 6-14, 11-16, 15-16

Nontherapy Ancillary Services Case Mix Group

PDPM Per Diems

PDPM Mock Up Component Per Diem (U) CMG CMI Total Per Diem Rate by Component Days 1-3 Days 4-20 Days 56-62 PT* $59.33 TA 1.53 $90.77 $90.77 $79.87 OT* $55.23 TA 1.49 $82.29 $82.29 $72.41 SLP $22.15 SC 2.66 $58.91 $58.91 $58.91 Nursing $103.46 HE2/HD2 2.39 $247.26 $247.26 $247.26 NTAS* $78.05 12+ 3.25 $253.66 $84.55 $84.55 Non-Case Mix $92.63 NA NA $92.63 $92.63 $92.63 Totals $825.52/Day $656.41 $635.63 *Component payment tapers

CMS View is Administrative Simplification Achieved Day 5 MDS Therapy OMRAs Day 30 MDS Day 90 MDS RUGs IV Day 14 MDS Day 60 MDS Discharge MDS PDPM Day 5/ Admission MDS Interim Adjustment Discharge MDS with Therapy Codes

Short Stay Policy Discharges of </=3 Days are Considered Same Stay and No New 5-Day Assessment is Required Unless Admitted to Different SNF Transferred SNF to SNF Interim Assessment Needed and Meet Criteria for Assessment Use Discharges of >3 Are Considered a New Stay and Require a New 5-Day Assessment Clinician Assignment to Clinical Options MDS Re-Assessment o Section GG for Functional Score o Cognitive Functional Scale

PDPM s Slope and Create Incentives for Shorter LOS as in RCS-1 COSTS Total Per Diem is the Sum of s for Each Component Base s All Component Taper or Decrease Over Stay Except Nursing and SLP Days 1-3 Days 4-20 Day 30 Day 60 Day 100 PT OT SLP Nursing NTAS s Can be Adjusted Using the Interim Assessment But Do Not Re-Set to Day One for Tapering Components