SNFs Begin Making Cuts to Stay Profitable Under PDPM

Last week, Genesis Healthcare said “it has reorganized its therapy gyms in response to PDPM and other industry changes.” The company laid off 585 out of about 10,000 Genesis Rehab employees. 

Genesis is not the only provider cutting staff. SNFs around the country are laying of therapists in an attempt to “play it safe” with PDPM. Therapists across the country cried out against a wave of lay-offs, pay cuts, and hour reductions in the wake of PDPM. While cutting therapists may seem like the obvious response to PDPM’s demands, it remains to be seen if such a move is wise in the long-term. Facilities still need to provide high quality therapy to patients who need it. Patients’ plans of care did not change on October 1st, and making dramatic changes in patient care is a red flag which may trigger an audit. If CMS sees patient welfare declining under the new rules, they may change them sooner than many providers seem to think. Getting back up to capacity with new staff is always a struggle. Massive lay-offs may come back to bite the facilities who reacted too quickly.

If your facility is struggling with PDPM, get the resources you need from CMS by clicking here. If paperwork doesn’t answer your questions, contact us today. We will help you navigate the new payment model before your facility has to take drastic measures!

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