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Long-term care hospitals take CMS payment hit

By Richard Pizzi

Last week the Centers for Medicare and Medicaid Services issued an interim final rule that cuts current fiscal year 2009 payment rates for the long-term care hospital prospective payment system.

The rule becomes effective on Wednesday, June 3.

Here’s the justification: CMS claims that its analysis of the LTCH final rule for FY 2009, which includes the 15-month period of July 2008 through September 2009, contained an error in the re-weighting of the LTCH payment unit, the MS-LTC-DRG.

CMS says this error has already resulted in overpayment of $130 million to long-term care hospitals. While CMS will not take steps to recapture the lost funds, they intend to implement a payment reduction for the remainder of FY 2009, which will reduce LTCH payments by $43 million, or 0.9 percent.

The agency is accepting comments on the interim final rule through June 29. You can comment electronically at http://www.regulations.gov or by regular mail sent to:

Centers for Medicare & Medicaid Services
Department of Health and Human Services
Attention:  CMS-1337-IFC
P.O. Box 8011
Baltimore, MD  21244-8011

In your comments, reference file code CMS-1337-IFC.