Long-Term Care

MPPR implementation is bad news for nursing facilities and rehab providers

PPS Alert for Long-Term Care, February 1, 2011

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Providing quality therapy to SNF residents is going to be more difficult if the multiple procedure payment reduction (MPPR) policy stays in effect for all of 2011 and beyond, says Kris Bykerk, PT, MBA, vice president of Community Physical Therapy and Associates in Addison, IL.

“The MPPR is going to hit rehab providers hard across all aspects of their business,” Bykerk says. “There’s expected to be an 11%–13% reduction in reimbursement for rehab services, and this is on top of cuts we’re already seeing from the MDS 3.0 and RUG-IV.”

The MPPR took effect January 1, 2011. Originally set to reduce the practice expense (PE) component of Medicare reimbursement by 25% for any patients receiving more than one unit of physical therapy, occupational therapy, and/or speech therapy in one day, the decrease was reduced to 20% for services furnished in office or other noninstitutional settings with the passage of the  Physician Payment and Therapy Relief Act in late 2010, says Janet Potter, CPA, MAS, healthcare research specialist at Frost, Ruttenberg & Rothblatt, PC, in Deerfield, IL.

However, the PE reduction remains at 25% for institutional settings, which includes SNFs.

As the law is currently written, all Part B therapy residents in SNFs or other settings will be subject to the MPPR. 

“Most SNF residents receive more than one unit of therapy on the same day, whether in the same discipline or in different ones,” says Potter. “Therefore, the vast majority of SNF therapy procedures will be affected by the MPPR.”

This is an excerpt from a member only article. To read the article in its entirety, please login or subscribe to PPS Alert for Long-Term Care.

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