Study determines risk of penalties under VBP

Dec 26, 2019
The Bottom Line

The SNF value-based purchasing (VBP) program was implemented a little over a year ago, in October 2018. A study published December 18 in the Journal of the American Geriatrics Society, “Performance and Penalties in Year 1 of the Skilled Nursing Facility Value‐Based Purchasing Program,” examined the performance scores and penalties of 14,558 SNFs over the past year since the VBP program implementation. Researchers of the study found that 72% (10,436) of the SNFs examined were penalized, with 21% (2,996) of them receiving the maximum penalty of 1.98%.

Researchers also used data collected to calculate the odds of SNFs being penalized.

Researchers found that SNFs have lower risk of being penalized if they meet any of the following criteria:

  • Located in a rural area
  • Non-profit or government owned
  • Have higher star ratings

On the contrary, SNFs have a higher risk of being penalized if they meet any of the following criteria:

  • Small, less than 70 beds
  • Lower nurse staffing
  • Located in lower-income area
  • Serves large population of frail residents

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