tci Medicare Compliance & Reimbursement - 2004 Issue 20

Long-Term Care: Final Rule Contains Big Increase For LTCHs

Long-term care hospitals could be big winners.Medicare payments to long-term care hospitals will increase 3.1 percent, or $2.96 billion, under a final rule in the May 7 Federal Register.This is better than expected. Those figures are an increase from the 2.9 percent, or $2.33 billion, in increased payments under the LTCH prospective payment system that the Centers for Medicare & Medicaid Services projected in its Jan. 30 proposed rule.The difference is "largely due to the more rapid than expected transition of hospitals from a blend of the federal rate and reasonable cost-based...

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