Changes in Patient Medical Complexity After Skilled Nursing Facility Payment Reform: A Qualitative Study
Natalie E Leland1, Rachel A Prusynski2, Amanda Shore1
1Department of Occupational Therapy, University of Pittsburgh, Pittsburgh, PA, USA.
Journal of the American Medical Directors Association
|December 1, 2025
Summary
The skilled nursing facility (SNF) patient-driven payment model (PDPM) incentivized complex care, but SNFs’ admission shifts varied. High-quality SNFs strategically admitted more complex patients, while lower-quality facilities showed minimal change due to prior practices.
Area of Science:
- Healthcare Economics
- Geriatric Care
- Health Services Research
Background:
- The Patient-Driven Payment Model (PDPM) in skilled nursing facilities (SNFs) aims to align reimbursement with patient complexity.
- Understanding SNF leaders' perspectives on admission practice shifts is crucial for evaluating PDPM's impact.
Purpose of the Study:
- To examine SNF leaders' views on changes in admission practices and patient case mix following PDPM implementation.
- To understand variations in SNF responses to PDPM's financial incentives.
Main Methods:
- A qualitative study involving 94 SNF leaders across the US.
- Semistructured interviews were conducted between January 2021 and December 2022.
- Thematic analysis explored leaders' perspectives on PDPM response, case mix changes, and contextual factors, analyzed by SNF quality rating.
Main Results:
- SNFs with a history of complex rehabilitation care reported strategic admission changes post-PDPM, prioritizing medically complex patients.
- Leaders from average to high-quality SNFs often described enhanced screening and admission of patients with higher nursing needs.
- Below-average quality SNFs reported fewer case mix changes, often due to pre-existing practices of admitting complex patients.
Conclusions:
- PDPM's intended shift towards admitting more medically complex patients varied based on SNFs' baseline characteristics and admission patterns.
- Findings highlight the need for nuanced national evaluations of PDPM implementation, considering organizational context.
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