Which payment arrangement best describes the facility-paid SNF reimbursement model?

• A. A fixed per diem rate that does not change
• B. A capitation payment covering all services
• C. Facility paid decreasing daily rate
• D. A fee-for-service per therapy session

Answer: (C)

Facility-paid decreasing daily rate means the facility receives a single daily payment that covers all services for each day of the SNF stay, with that daily amount falling over time. This fits SNF reimbursement because payment is made to the facility as a bundled daily rate rather than per service, and the decreasing rate mirrors the typical pattern of higher resource use early in a stay that tapers as the patient improves. It provides budgeting predictability for the facility and aligns incentives toward efficient care since the daily payment changes over the course of the stay. The other structures—an unchanging fixed per diem, capitation, or paying only for each therapy session—do not capture the idea of a bundled facility payment that declines with length of stay.