Objectives
Medicare implemented a new skilled nursing facility (SNF) payment model, the Patient-Driven Payment Model (PDPM), in part to incentivize SNFs to admit more medically complex patients. However, it is unclear whether PDPM led to changes in case-mix in SNFs, and whether response to PDPM differed by SNF quality rating.
Design
Secondary analysis of January 2018 through February 2020 Medicare data.
Setting and Participants
A national cohort of fee-for-service Medicare beneficiaries who discharged from hospitals to SNFs. SNFs were classified as average/high quality if rated ≥3 stars and low quality if rated <3 stars.
Methods
Case-mix was defined using 4 measures of medical complexity relevant to PDPM incentives. Two measures captured diagnosis-specific reasons for SNF admission: medical management or uncomplicated total joint replacements. The third measure captured SNF admissions with dementia diagnoses. The final measure was the average complexity score based on the nontherapy ancillary (NTA) component of the PDPM model. Interrupted time series models with interaction terms for SNF quality (ie, low vs average/high quality) estimated how case-mix changed after PDPM implementation.
Results
Before PDPM, low-quality SNFs admitted more patients for medical management and with dementia, fewer patients for uncomplicated total joint replacements, and had higher NTA scores than average/high-quality SNFs. For all SNFs, PDPM was associated with increases in medical management admissions and a decline in total joint replacement admissions. Yet, effects were smaller in low-quality SNFs. For all SNFs, PDPM was associated with slight increases in NTA scores. PDPM was associated with fewer admissions for patients with dementia, especially in low-quality SNFs.
Conclusions and Implications
Results suggest that PDPM had its intended effect of shifting access to SNF care toward medically complex patients. However, low-quality SNFs were less responsive to PDPM in changing their case-mix. PDPM may also exacerbate challenges in SNF access for patients with dementia.
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