CMS proposes reductions in Medicaid allotments to states for hospitals’ uncompensated care

On July 28, 2017, the Centers for Medicare and Medicaid Services (CMS) issued a proposed rule to implement $43 billion in reductions in federal Medicaid allotments to state Medicaid agencies for payment adjustments to hospitals serving a disproportionate share of low-income persons. The reductions in such allotments under the proposed rule will apply to federal fiscal years 2018-2025. Reductions nationwide will start at $2 billion in FY 2018 and will reach $8 billion per year in FY 2024 and FY 2025. [More]

Florida legislature reaches agreement on hospital funding for one year

Florida legislators agreed to end a conflict about funding for hospitals for one year by increasing Medicaid reimbursement rates for hospitals. The Low Income Pool program (LIP) funded by a section 1115 project was scheduled to end June 30, but the Center for Medicare and Medicaid Services (CMS) did agree to continue the program at a reduced funding level from $2.2 billion to $1 billion for one year and $600 million thereafter.

CMS Issues Final Rule Re: Hospital-Specific Limitation

In the December 3, 2014 Federal Register (79 Fed. Reg. 71679), the Centers for Medicare & Medicaid Services (CMS) issued a final rule authorizing a service-specific basis for defining the uninsured, for the purpose of determining the hospital-specific limitation on disproportionate share hospital (DSH) payments.

Under section 1923(g) of the Social Security Act, DSH payments to hospitals are limited to the uncompensated costs of providing hospital services to individuals who are Medicaid eligible or have no health insurance (or other source of third party coverage) for the services furnished during the year. [More]

CMS Proposes Updates to Medicare Payment Rules for Hospitals

The Centers for Medicare and Medicaid Services (CMS) published proposed rules in the May 15, 2014 Federal Register on Medicare payments under the prospective payment systems (PPS) for acute care hospitals and long-term care hospitals (LTCHs). The proposed rules will apply to discharges on or after October 1, 2014. CMS is also proposing to update rate-of-increase limits for certain hospitals excluded from the PPS that are paid based on reasonable costs. [More]

New Physician-Owned Hospitals Must Meet Dec 31 Medicare Certification Deadline

The new health care law prevents future physician-owned hospitals from participating in federally financed health programs, unless such facilities are open and operating and certified by Medicare by December 31, 2010. Under the law, expansions of existing doctor-owned hospitals will face restrictions, such as being located in states with a shortage of hospital beds, and in counties that are growing 50 percent faster than the overall state. [More]