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The Patient-Driven
Payment System, the MDS
v3.0 Assessment Skills
Necessary for Success
Meet your presenter
Reta A. Underwood, RAC-CT, QCP, CPC
President
Reta has over 34 years of professional work experience in the long-term care industry. Reta’s experience has included management and
director positions with nursing facilities and health care companies. She has also provided corporate-wide MDS support services,
numerous mock surveys, regulatory compliance correction, educational programs, clinical documentation, quality assurance
programming, and most recently implemented PDPM in facilities nationwide.
Reta has supplied input to CMS and has been included on projects and discussions pertaining to post-acute care. She holds national
certifications through the American Association of Nurse Assessment Coordination (AANAC) as a Resident Assessment Coordinator
(RAC-CT); Quality (QAPI) Professional and Nurse Manager and as a certified ICD-10-CM coder.
Reta has had numerous articles published in the long-term care industry trade publications and has been used as an expert resource
professional for media interviews including McKnight’s News; HCPro MDS and PPS Advisor and Provider AHCA magazine.
Reta has also copyrighted several clinical documentation forms and tools, such as for Medicare Triple Check Process, nutritional
assessment, skilled clinical and MDS documentation, and restorative nursing programming.
Legislation
• Balanced Budget Act (BBA) 1997
• Balanced Budget Refinement Act (BBRA) 1999
• Benefit Improvement & Protection Act (BIPA) 2000
• Medicare ModernizationAct (MMA) 2003
• Affordable Care Act (ACA) 2010
• Post AcuteTransformationAct (IMPACT) 2014
Part A SNF
Services
Include
NURSING CARE (RN) ROOM AND BOARD PT, OT, AND/OR SLP MEDICAL SOCIAL
SERVICES
DRUGS, BIOLOGICALS,
SUPPLIES, APPLIANCES
AND EQUIPMENT
MEDICAL AND OTHER
DIAGNOSTIC OR
THERAPEUTIC
SERVICES PROVIDED
BY A HOSPITAL
(AGREEMENT)
OTHER SERVICES
NECESSARY TO THE
HEALTH OF THE
PATIENTS GENERALLY
PROVIDED BY SNFS
<IOM 100-2, CH 8, SEC
10>
CHAPTER 6: Medicare Skilled
Nursing Facility Prospective
Payment System (SNF PPS)
The MDS assessment data is used to calculate the
resident’s Patient Driven Payment Model (PDPM)
classification necessary for payment.The MDS contains
extensive information on the resident’s nursing and
therapy needs, ADL status, cognitive status, behavioral
problems, and medical diagnoses.This information is
used to define PDPM case-mix adjusted groups, within
which a hierarchy exists that assigns case-mix weights
that capture differences in the relative resources used for
treating different types of residents.
The Patient Driven Payment Model
(PDPM)
PDPM separately identifies and adjusts for the
varied needs and characteristics of a resident’s
care and combine this information together to
determine payment using 6 separate
calculations
Data sources for methodology include Medicare
enrollment data, Medicare claims data, MDS
assessment data and facility data
Base rates = average cost of treating a typical
SNF patient
PDPM
PDPM adjusts payment for each major element
of a resident’s SNF care, specifically for physical
therapy (PT), occupational therapy (OT),
speech-language pathology (SLP), nursing, and
non-therapy ancillaries (NTA). In section 6.6
below, we provide a PDPM calculation
worksheet.This calculation worksheet was
developed in order to provide clinical staff with a
better understanding of how PDPM works.The
worksheet translates the standard software
code into plain language to assist staff in
understanding the logic behind the classification
system.
HIPPS Code
First Character: PT/OT Component
HIPPS Code
Second Character: SLP Component
HIPPS Code
Third Character: Nursing Component
HIPPS Code
Third Character: Nursing Component
HIPPS Code
Third Character: Nursing Component
HIPPS Code
Fourth Character: NTA Component
30 - Billing SNF PPS Services
(page 33/104)
SNFs and hospital swing bed providers are required to
report inpatient Part A PPS billing data as follows. Refer to
the Medicare Claims Processing Manual, Chapter 25,
“Completing and Processing the Form CMS-1450 Data Set,”
for a description of claim data elements.
Register Now

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The Importance of MDS v3.0 Skills in PDPM Success

  • 1. The Patient-Driven Payment System, the MDS v3.0 Assessment Skills Necessary for Success
  • 2. Meet your presenter Reta A. Underwood, RAC-CT, QCP, CPC President Reta has over 34 years of professional work experience in the long-term care industry. Reta’s experience has included management and director positions with nursing facilities and health care companies. She has also provided corporate-wide MDS support services, numerous mock surveys, regulatory compliance correction, educational programs, clinical documentation, quality assurance programming, and most recently implemented PDPM in facilities nationwide. Reta has supplied input to CMS and has been included on projects and discussions pertaining to post-acute care. She holds national certifications through the American Association of Nurse Assessment Coordination (AANAC) as a Resident Assessment Coordinator (RAC-CT); Quality (QAPI) Professional and Nurse Manager and as a certified ICD-10-CM coder. Reta has had numerous articles published in the long-term care industry trade publications and has been used as an expert resource professional for media interviews including McKnight’s News; HCPro MDS and PPS Advisor and Provider AHCA magazine. Reta has also copyrighted several clinical documentation forms and tools, such as for Medicare Triple Check Process, nutritional assessment, skilled clinical and MDS documentation, and restorative nursing programming.
  • 3. Legislation • Balanced Budget Act (BBA) 1997 • Balanced Budget Refinement Act (BBRA) 1999 • Benefit Improvement & Protection Act (BIPA) 2000 • Medicare ModernizationAct (MMA) 2003 • Affordable Care Act (ACA) 2010 • Post AcuteTransformationAct (IMPACT) 2014
  • 4. Part A SNF Services Include NURSING CARE (RN) ROOM AND BOARD PT, OT, AND/OR SLP MEDICAL SOCIAL SERVICES DRUGS, BIOLOGICALS, SUPPLIES, APPLIANCES AND EQUIPMENT MEDICAL AND OTHER DIAGNOSTIC OR THERAPEUTIC SERVICES PROVIDED BY A HOSPITAL (AGREEMENT) OTHER SERVICES NECESSARY TO THE HEALTH OF THE PATIENTS GENERALLY PROVIDED BY SNFS <IOM 100-2, CH 8, SEC 10>
  • 5. CHAPTER 6: Medicare Skilled Nursing Facility Prospective Payment System (SNF PPS) The MDS assessment data is used to calculate the resident’s Patient Driven Payment Model (PDPM) classification necessary for payment.The MDS contains extensive information on the resident’s nursing and therapy needs, ADL status, cognitive status, behavioral problems, and medical diagnoses.This information is used to define PDPM case-mix adjusted groups, within which a hierarchy exists that assigns case-mix weights that capture differences in the relative resources used for treating different types of residents.
  • 6. The Patient Driven Payment Model (PDPM) PDPM separately identifies and adjusts for the varied needs and characteristics of a resident’s care and combine this information together to determine payment using 6 separate calculations Data sources for methodology include Medicare enrollment data, Medicare claims data, MDS assessment data and facility data Base rates = average cost of treating a typical SNF patient
  • 7. PDPM PDPM adjusts payment for each major element of a resident’s SNF care, specifically for physical therapy (PT), occupational therapy (OT), speech-language pathology (SLP), nursing, and non-therapy ancillaries (NTA). In section 6.6 below, we provide a PDPM calculation worksheet.This calculation worksheet was developed in order to provide clinical staff with a better understanding of how PDPM works.The worksheet translates the standard software code into plain language to assist staff in understanding the logic behind the classification system.
  • 8. HIPPS Code First Character: PT/OT Component
  • 10. HIPPS Code Third Character: Nursing Component
  • 11. HIPPS Code Third Character: Nursing Component
  • 12. HIPPS Code Third Character: Nursing Component
  • 14. 30 - Billing SNF PPS Services (page 33/104) SNFs and hospital swing bed providers are required to report inpatient Part A PPS billing data as follows. Refer to the Medicare Claims Processing Manual, Chapter 25, “Completing and Processing the Form CMS-1450 Data Set,” for a description of claim data elements.
  • 15.