Scoring Methodology & Payment Adjustment
SNFs’ SNF 30-Day All-Cause Readmission Measure (SNFRM) results in the performance period are compared to:
- Their own past performance during the baseline period to calculate an improvement score (scores range from 0 to 90)
- National SNF performance during the baseline period to calculate an achievement score (scores range from 0 to 100)
A SNF’s achievement and improvement scores are compared; whichever score is higher becomes that SNF’s performance score.
For more in-depth information on how achievement and improvement scores are calculated, please see the FY 2017 SNF PPS Final Rule and the SNF VBP Program: FY 2021 Incentive Payment Multiplier Calculation Infographic (PDF) in the “Resources” section of this website.
Incentive Payment Calculation Methodology
Each SNF’s performance score is transformed into an incentive payment multiplier (IPM) using a logistic (or S-shaped) exchange function, which is applied to your SNF's adjusted federal per diem rate for services provided during the applicable SNF VBP Program year. When payments are made to SNF claims, the adjusted federal per diem rate is multiplied by the IPM. In the SNF VBP Program Exchange Function Methodology Report (PDF) linked below, you can find more information about why the logistic exchange function was selected and how SNF performance scores are used to derive incentive payments.
For more information on how performance standards, performance scores, and IPMs are calculated, please see the SNF VBP Program: FY 2021 Incentive Payment Multiplier Calculation Infographic (PDF) linked below.