What type of payment system does the Skilled Nursing Facility (SNF) use?

Skilled Nursing Facilities (SNFs) operate under an all-inclusive per diem payment system with mandated consolidated billing. This means that SNFs receive a fixed daily rate for each patient, which covers a range of services provided during that day, regardless of the specific types of care or treatments administered. This per diem rate simplifies the billing and reimbursement process by combining multiple services into one charge, promoting efficiency in healthcare delivery.

Consolidated billing further supports this structure by requiring SNFs to include all related services provided during a patient's stay in one bill, which is submitted to Medicare or other payers. This makes it easier for the payer to review and process payments, and it helps prevent billing errors associated with individual service charges.

The other options reflect different billing practices that do not align with the established payment system for SNFs. For example, personalized fee structures or flat annual payments do not fit within the framework of per diem reimbursements, which are specifically designed for the episodic nature of skilled nursing care. Likewise, monthly billing based on patient visits is not representative of the continuous care model provided in SNFs, which typically necessitates daily evaluation and services.