Coping With Multiple Reimbursement System Reductions January 1999 saw the combined effect of the initiation of the Prospective Payment System (PPS) and the Medicare Part B cap for many skilled nursing facilities (SNF) in this country. This combined reimbursement reduction has had, and will continue to have, dramatic effects on the therapy community. Each rehabilitation ... Article
Article  |   April 01, 1999
Coping With Multiple Reimbursement System Reductions
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Swallowing, Dysphagia & Feeding Disorders / Professional Practice
Article   |   April 01, 1999
Coping With Multiple Reimbursement System Reductions
SIG 13 Perspectives on Swallowing and Swallowing Disorders (Dysphagia), April 1999, Vol. 8, 13-15. doi:10.1044/sasd8.1.13
SIG 13 Perspectives on Swallowing and Swallowing Disorders (Dysphagia), April 1999, Vol. 8, 13-15. doi:10.1044/sasd8.1.13
January 1999 saw the combined effect of the initiation of the Prospective Payment System (PPS) and the Medicare Part B cap for many skilled nursing facilities (SNF) in this country. This combined reimbursement reduction has had, and will continue to have, dramatic effects on the therapy community. Each rehabilitation company is apparently responding to the changes in reimbursement in a slightly different fashion. Some companies have initiated caps on salaries while others have cut salaries as much as 2530%. In addition, lay-offs have been reported across the country. The net effect of the above is cost savings. The intent of the Balanced Budget Act of 1997 (which resulted in PPS) was a projected cost saving of over $9 billion from the SNF community. “For rehabilitation providers this has resulted in a 30% loss of revenue. While there is less revenue, health care providers still need to supply the same quality of care, which will require providers to be focused and cost-efficient” (Carlucci, 1999, p. 5).
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