Scoring Methodology & Payment Adjustment
SNFs’ SNF 30-Day All-Cause Readmission Measure (SNFRM) scores 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 in the “Resources” section of this web site.
Incentive Payment Calculation Methodology
Each SNF’s performance score is transformed into an incentive payment percentage using a logistic (or S-shaped) exchange function, which is used to calculate the SNF’s incentive payment that is included on each Medicare claim. In the SNF VBP Program Exchange Function Methodology Report 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.