Medicare Incentive Payment Multiplier for October Rates

The Value Based Purchasing (VBP) adjustment is also called the Incentive Payment Multiplier (IPM). Each facility receives its own IPM. The facility-specific IPM has been on hold for the last two years due to COVID-19. When margins are thin, the IPM can be the controllable item that makes the difference between profit, break-even, or loss.  

Medicare SNF reimbursement will be adjusted up or down again by the IPM, beginning with service dates on October 1, 2023. This IPM is based on the SNF 30-Day All-Cause Readmission Measure.   

Do you know your SNF’s IPM? In August, CMS announced that the facility-specific IPMs are available for download via the Internet Quality Improvement and Evaluation System (iQIES). SNFs should know this number because it will affect their reimbursement and budgets. Since it is facility-specific, not entering it in the billing software properly will also cause reconciling issues later.