tci Medicare Compliance & Reimbursement - 2004 Issue 25

LONG-TERM CARE HOSPITALS: Expect Payments To LTCHsTo Shrink In Near Future

MedPAC almost, but not quite, recommends moratorium. With Medicare spending on long-term care hospitals nearly quintupling in recent years, the Medicare Payment Advisory Commission grew worried enough to consider recommending a moratorium on reimbursing new LTCHs, Executive Director Mark Miller told health-care reporters June 15. Ultimately, the panel "stepped away" from the draconian notion of a moratorium, but "may reconsider" it if a way to pay LTCHs in line with the specific value they add to Medicare isn't soon found, Miller said. Annual Medicare spending on LTCHs rose from $398 million in 1993 to $1.9 billion. For now...

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