CMS cuts LTCH PPS Rates
CMS has issued an interim final rule cutting current fiscal year 2009 payment rates for the long-term care hospital prospective payment system, effective Wednesday, June 3. CMS reports 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 LTC-MS-DRG. According to CMS, this error has already resulted in overpayment of $130 million to LTCHs. While CMS will not take steps to recapture this amount, they will implement a payment reduction for the remainder of FY 2009, which will reduce LTCH payments by $43 million, or 0.9%. The agency is accepting comments on the interim final rule through July 29.