Value Over Volume: Lancaster Pollard Reviews PDPM

Posted on July 17, 2018 by Jodi Boyne

As we first reported in May, the Centers for Medicare & Medicaid Services (CMS) is proposing an entirely new case mix payment system to take effect on Oct. 1, 2019. In this week’s Advantage, we feature a review of this Patient-Drive Payment Model (PDPM) from Lancaster Pollard.  

The PDPM was designed to replace the Resource Utilization Group currently used by CMS for Medicare Part-A stays. CMS has touted several potential benefits of the new model, such as a reduced number of payment group combinations, simplified payment calculations and reduced paperwork. CMS estimates the new model will generate $2 billion in system-wide savings over the next decade. 

Bradly Granger, Vice President of Operational Clinical Underwriting with Lancaster Pollard, provides a perspective on what led to this new model being created and what providers and industry leaders are saying about its proposed implementation. To read more, see Another Step Towards Value Over Volume.