WASHINGTON, D.C. (July 19, 2019)—The Competitive Bidding Implementation Contractor released a new Financial Scoring Methodology fact sheet providing information about the financial scoring process used to evaluate a bidder’s financial health for Round 2021. The fact sheet provides insight on how the Centers for Medicare & Medicaid Services (CMS) computes a financial score for each bidder using financial and credit score information provided by bidders.
Included in the fact sheet are tables detailing the methodology of scoring. Providers can receive a total score of 100 to 80 points from sales ratios and 20 points from the provider’s numerical credit score or rating. Scores on the ratios are provided on a scale from 1 to 9.6. Eight ratios have a maximum score of 7.6, while the quality of earnings and operating cash flow to sales ratios both have a maximum score of 9.6. These two ratios are valued higher due to their emphasis on cash flow. Bidders will have their scores for each individual ratio totaled for a maximum score of 80 points.
This information in the fact sheet provides more detailed information about how CMS assesses bidders’ financial data than the agency has previously provided, according to AAHomecare, who has advocated for increased transparency in the bidding process.
Find the fact sheet here.
Find the required financial documents here.
View the process for reviewing covered documents here.
Industry advocacy groups have assembled a summary of requirements at dmecbeducation.com.