The Skilled Nursing Facility Value-Based Purchasing (SNF VBP) Program is evolving — and fast.
With new measures, shifting incentives, and increasing scrutiny, it’s time for nursing home leaders to move from confusion to clarity. Here’s a breakdown of what the program entails and how your facility can take meaningful action today.
What Is SNF VBP?
The SNF VBP Program, launched by CMS in 2018, rewards skilled nursing facilities based on performance—not just volume. Historically, the program focused on hospital readmission rates, but starting in FY 2026, CMS will evaluate SNFs using four NEW key measures:
1. All-Cause Hospital Readmissions
2. Healthcare-Associated Infections (HAIs) Resulting in Hospitalization
3. Staffing Hours per Resident Day
4. Staffing Turnover
CMS withholds 2% of Medicare Part A payments and redistributes 60% of that pool as performance-based incentive payments. Facilities are scored on both achievement and improvement, with the higher score used for payment calculations.
Recommended Action Steps: Pay for Performance
1. Know Your Numbers
• Review your quarterly SNF VBP feedback reports.
• Benchmark your performance against state and national averages.
• Track trends in readmissions, infections, and staffing metrics.
2. Strengthen Clinical Pathways
• Implement robust infection control protocols.
• Use root cause analysis for readmissions.
• Engage your medical director and QAPI team in proactive care planning.
3. Invest in Workforce Stability
• Monitor staffing hours and turnover monthly.
• Conduct employee satisfaction and stay interviews along with exit surveys to identify retention
barriers.
• Offer flexible scheduling, mentorship, and employee recognition programs.
4. Align MDS and Billing Accuracy
• Ensure MDS assessments reflect true acuity and care needs.
• Train interdisciplinary teams on documentation that supports PDPM and VBP measures.
• Audit ICD-10 coding and assessment timing for compliance.
5. Engage Your Team
• Share VBP goals and progress in all-staff meetings.
• Celebrate improvements and incentivize quality outcomes.
• Create cross-functional task forces to tackle specific measures.
Final Thoughts
Value-based purchasing isn’t just a payment model—it’s a call to elevate care. By understanding the measures and taking targeted action, SNFs can improve resident outcomes, boost staff morale, and earn financial incentives. The key is collaboration, transparency, and a relentless focus on quality.
Michelle Stober, RN, BSN
CEO
For more information contact
consult@srcaresolutions.net
Download this checklist to use during leadership huddles, QAPI meetings, or as part of your VBP readiness toolkit.
