The American Hospital Association on March 26 urged the Centers for Medicare & Medicaid Services not to extend its 25% Rule to all long-term care hospitals, but instead develop appropriate criteria for the types of patients that should be treated in LTCHs. Commenting on the proposed rule for LTCHs in rate year 2008, AHA urged CMS to work with Research Triangle Institute and providers to develop appropriate facility and patient-centered criteria for LTCHs.
The association supported re-weighting the LTCH diagnosis-related groups in a budget-neutral manner, but opposed proposed changes to the short-stay outlier policy and called for a full market basket update to LTCH payments. Under the 25% Rule, if more than 25% of admissions come from a co-located hospital, the LTCH prospective payment rate payment is reduced.
CMS’ proposal generally would not allow LTCHs to receive more than 25% of admissions from any one referral hospital.
[ via AHA News Now ]
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