tci Medicare Compliance & Reimbursement - 2006 Issue 6

LTC HOSPITALS: PPS Changes Will Bring LTC Hospital Payments In Line, CMS Hopes

Inflation adjustment calculations for LTC hospitals may soon change.The Centers for Medicare & Medicaid Services is accepting comments on radical updates to the prospective payment system for long-term care hospitals.In 2003, there were approximately 280 LTC hospitals; the new PPS would now affect about 375 facilities. CMS estimates Medicare payments under the new LTCH PPS will be $5.27 billion for 2007--a 70 percent increase since 2003.The new PPS would freeze Medicare payment rates for LTCH discharges, and the federal rate would stay at $38,086 for the 2007 rate year. The method for calculating LTCHs'...

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