CMS proposes rule for inpatient rehab payment
The Centers for Medicare & Medicaid Services in late April released a proposed rule for the prospective payment system governing inpatient rehabilitation facilities, seeking to address criticism of the so-called “75 percent rule.” The agency said it will apply a freeze for payment rates to inpatient rehabilitation facilities for fiscal year 2009, which begins on Oct. 1, 2008. As a result, the agency expects to spend about $5.6 billion in fiscal 2009 for these types of services and about $30 billion over the next five years. The American Hospital Association analysis of the proposed rule indicates that the fiscal 2009 rate must be based on the 2007 standard payment factor, resulting in a proposed standard payment of $13,034, which incorporates adjustments for the wage index, labor-related share and other updates.
6 independent MD hospitals join virtual ICU collaborative
Six independent rural Maryland hospitals will implement virtual intensive care units, to be monitored by an existing virtual ICU program in an integrated delivery system based in Delaware. The program, represents the largest collaborative to share resources to bring improved ICU services to multiple unaffiliated hospitals. The organizations say that the program, called Maryland eCare, could be a model for bringing virtual ICU services to rural areas. While virtual ICUs serve about 200 hospitals nationwide, they’re usually operated in facilities operated by a single integrated delivery system. The technology in the Maryland project is from VisICU, a Baltimore-based technology company.
Deal will keep Blue Island hospital’s doors open
St. Francis Hospital & Health Center was preparing to close its doors, until MSMC Investors LLC stepped forward with a proposition to acquire the hospital. SSM Health Care, which owns and operates the 410-bed, Catholic, voluntary, not-for-profit healthcare institution, signed a deal last month with MSMC to transfer ownership within 60 to 90 days. The transfer ensures that the hospital will remain open and continue to serve the city of Blue Island, Ill. and surrounding communities. MSMC Investors was created by Transition Healthcare Company and its financial backer, Falcon Investors, as the holding company for the hospital and related healthcare assets.