CMS released its final bundled payment model for hip and knee replacement surgeries, which includes plans to waive the three-day stay rule for beneficiaries entering qualified SNFs. The final rule requires hospitals in 67 geographic areas to participate in the Comprehensive Care for Joint Replacement Payment Model. Under the model, hospitals will be held accountable for all financial risk surrounding the surgery, inpatient stay and care following discharge. The five-year test will go into effect on April 1, 2016. The final rule does make it easier for more SNFs to participate and create an incentive for quality improvements. CMS allows a waiver to the three-day stay rule if a beneficiary is being discharged into a SNF that is on a list of qualified facilities. A qualified facility is defined as one that has an overall rating of three stars or more on the 5-Star Rating System for at least seven of the previous 12 months. The final rule can be viewed in the Federal Register. For more information, including the proposed and final rule, please visit the CJR Model web page. The full text of the rule is also available in PDF format.