Outsourced RT Creates Increased Profitability Under PDPM

Outsourced RT Creates Increased Profitability Under PDPM

Recently, an article appeared in the Skilled Nursing News that specifies how outsourced RT creates increased profitability under PDPM (the Patient-Driven Payment Model). The article quotes Edwin Frost of Aeris Consulting, regarding the potential for increased profit for nursing homes; you can read it here.

As the article notes, PDPM matches reimbursement for nursing homes based on resident acuity. Frost points out that in the wake of long term acute care hospitals closing, skilled nursing facilities have been taking on sicker patients with more complex needs. With PDPM, credit will be given to nursing homes for caring for these sicker patients.

While in the past caring for more complex illnesses had been a cost of doing business, there will now be greatly increased reimbursement potential for skilled nursing facilities. A facility needs to demonstrate at least 15 minutes of face time between respiratory therapists and patients each day, and the facility must also document a patient’s condition during a specified look back period. With timely respiratory therapy through outsourcing, the article also points out, nursing homes can also prevent costly hospital trips for patients.

All of these changes make outsourced RT much more attractive and profitable for skilled nursing facilities. Frost stated for the article that consulting services typically cost about one-third of the total reimbursement that providers accrue, making for as much as a 70% return on investment. In addition, outsourcing is an alternative to in-house training for staff nurses that can only see a few patients per hour, and who could simply leave in an area where there is high turnover.

Click here to see the article and find out more about how outsourced RT creates increased profitability under PDPM. PDPM represents an increased profit source for skilled nursing facilities, and it’s likely to be a source of revenue for SNFs in 2020 and beyond.