MDS Alert
CMS Explains the Math for the $3.87 Billion SNF Part A Reduction for FY 2012
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'Believe it or not, it could have been worse,' says SNF PPS expert. CMS noted in a press statement that the FY 2012 update, "an increase of 1.7 percent or $600 million ... reflects a 2.7 percent increase in the prices of a 'market basket' of goods and services reduced by a 1.0 percent multifactor productivity (MFP) adjustment mandated by the Affordable Care Act. The combined MFP-adjusted market basket increase and the FY 2012 recalibration will yield a net reduction of $3.87 billion, or 11.1 percent." "The productivity adjustment offset in accordance with the Affordable Care Act of 2010 was 1.0 percent, which is slightly less than the CMS estimate of 1.2 percent," says Steve Jones, CPA, director of the SNF practice group at Moore Stephens Lovelace, PA, in Clearwater, Fla. "So believe it or not, it could have been worse."
MDS Alert
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