CMS updates have substantially affected nursing homes' star ratings, bringing significant changes to their evaluation criteria.

The article discusses the importance of the Centers for Medicare & Medicaid Services (CMS) Five-Star Rating system for skilled nursing facilities (SNFs). The rating system has been updated to include a new staffing domain, which may lead to changes in a facility's overall star rating. A lower star rating can have significant consequences, including reduced occupancy and Medicare volumes, as well as limited participation in value-based models.

The article cites an analysis by CLA, a professional services firm, which found strong correlations between CMS Five-Star Ratings and key performance indicators such as occupancy and Medicare volumes. The analysis also suggests that facilities with lower star ratings may be bypassed by consumers or referral sources in favor of those with higher star ratings.

Rob Schile, Principal at CLA, notes that the time is now for nursing homes to understand the changes occurring in the market and in Medicare, including the new star ratings methodology and the forthcoming transition to the Patient-Driven Payment Model. Cory Rutledge, senior living leader with CLA, emphasizes the importance of understanding these changes and their potential impact on a facility's financial performance.

CLA offers assistance to nursing homes through its senior living professionals, who can help model the financial impacts of changing star ratings and provide guidance on navigating the updated rating system.

Key points from the article:

• The CMS Five-Star Rating system has been updated to include a new staffing domain.
• A lower star rating can have significant consequences, including reduced occupancy and Medicare volumes.
• Facilities with lower star ratings may be bypassed by consumers or referral sources in favor of those with higher star ratings.
• CLA's analysis found strong correlations between CMS Five-Star Ratings and key performance indicators such as occupancy and Medicare volumes.
• The time is now for nursing homes to understand the changes occurring in the market and in Medicare, including the new star ratings methodology and the forthcoming transition to the Patient-Driven Payment Model.

Overall, the article highlights the importance of understanding the updated CMS Five-Star Rating system and its potential impact on skilled nursing facilities.