Underreporting Functional Scores and Nursing Components
Definition
Inaccurate or incomplete documentation in Section GG functional scores and nursing components like depression screenings or restorative care leads to assignment of lower PDPM payment groups. Facilities fail to capture eligible NTA points or perform timely Interim Payment Assessments (IPAs) for condition changes, missing higher reimbursements for provided care.
Key Findings
- Financial Impact: $5,000+ per denial case; ongoing lower daily rates
- Frequency: Per resident assessment and stay (recurring)
- Root Cause: Inconsistent documentation between nursing, therapy, and billing teams; lack of cross-validation
Why This Matters
This pain point represents a significant opportunity for B2B solutions targeting Nursing Homes and Residential Care Facilities.
Affected Stakeholders
Therapists, Nurses, MDS Coordinators, Billing Teams
Deep Analysis (Premium)
Financial Impact
$100,000-$180,000 annually per facility (MCO audit findings + lost PDPM revenue from coding errors; ~2-3 MCO audits annually with $50,000-$60,000 per audit impact) β’ $100,000-$200,000 annually per facility (state audit penalties + missed NTA revenue from incomplete initial assessments) β’ $12,000-$35,000 monthly in delayed payments from Medicaid denials and resubmissions; $80,000-$250,000 annually in lost revenue from lower RUG classification due to unrecorded functional decline or missed NTA points; compliance risk (potential recoupment)
Current Workarounds
Admissions Director relies on intake information only; no systematic review of hospital records or historical functional data before MDS completion; higher PDPM group opportunity missed at admission β’ Admissions Director uses generic intake form; MDS Coordinator later discovers missing state-required assessments; late amendments submitted; state audit penalties issued β’ Billing Manager flags missing IPAs retroactively; requests clinical staff submit late IPA; submits post-discharge amendment; hopes for payment adjustment approval
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Missed Diagnoses and Special Conditions in MDS Assessments
MDS Documentation Failures Leading to Denials and Audits
Costs of Directed Remedies and State Monitoring for Deficiencies
Decision Errors in Informal Dispute Resolution (IDR) Appeals
Fines and Payment Denials from Uncorrected Survey Deficiencies
Payment Denials and Delays from Inadequate Payer Source Verification
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