Money moves
CMS Finalizes PDPM Recalibration Effective October 2026
CMS confirmed the PDPM parity adjustment will reduce overall SNF payments by 3.2% starting October 2026, recapturing roughly $1.7B in what CMS calls excess payments.
Policy watch
MedPAC Recommends Congress Freeze SNF Payment Updates for Two Years
MedPAC's December report to Congress recommends a 0% payment update for FY2027 and FY2028, citing an aggregate Medicare margin of 14.2% among efficient providers.
Heads up
California AG Sues PE-Backed Chain Over Alleged Care Deficiencies
California's Attorney General filed suit against Pinnacle Senior Living, a private-equity-backed 38-facility chain, alleging chronic understaffing led to 12 preventable resident deaths over two years.
Deal watch
CareTrust REIT Sells 15 Underperforming SNFs for $142M
CareTrust divested 15 facilities in the Southwest with an average occupancy of 68%, pivoting capital toward higher-acuity transitional care assets.
The bottom line
The PDPM recalibration is now locked in and MedPAC wants a rate freeze, which means the margin squeeze is real and coming fast.