Skilled Nursing Facility Value-Based Purchasing (SNF VBP) Program Exchange Function Analyses Report Now Available

June 15, 2018
Policy Snapshot

The Centers for Medicare & Medicaid Services (CMS) has released a technical report to provide additional details on the empirical analyses that were considered when developing and finalizing the logistic exchange function that will be used to translate Skilled Nursing Facility (SNF) performance scores into incentive payments for the Skilled Nursing Facility Value-Based Purchasing (SNF VBP) Program. CMS has adopted the logistic exchange function as the method that will be used to translate SNF performance scores into value-based incentive payments beginning in October 2018 (FY 2019).

The report includes CMS’ analysis of historical Skilled Nursing Facility Readmission Measure (SNFRM) (NQF #2510) data of the estimated effects that result from using other methodologies as part of the overall scoring process, and analyses of other exchange function forms. It concluded that the logistic function provided the largest percentage of SNFs with net-positive value-based incentive payments. 

To view the full technical report on our exchange function methodology and analyses, please visit:

For more information about the SNF VBP Program, please visit and refer to the FY 2018 SNF PPS final rule