Patient Driven Payment Model (PDPM): Impact on Hospitals

The Patient Driven Payment Model (PDPM), as we all know by now, is the new reimbursement system model that Medicare is currently using to determine payments for skilled nursing facilities, which started on October 1, 2019. PDPM replaces the previous Resources Utilization Groups (RUGs) model. The major impact is on SNFs, but there are also challenges and opportunities for hospitals — and SNFs would benefit by providing them with guidance. Despite all that’s changing under PDPM, the new model is still a fee-for-service, per-diem arrangement.