CMS implements extension of two programs for small, rural hospitals

AHA News Now

The Centers for Medicare & Medicaid Services yesterday issued a notice extending the Medicare low-volume payment adjustment and Medicare-Dependent Hospital program for the second half of fiscal year 2014 (April 1 through Sept. 30, 2014), as required by the Pathway for SGR Reform Act. To qualify for the low-volume adjustment for discharges on or after April 1, a hospital must be at least 15 miles from the nearest inpatient prospective payment system hospital and have fewer than 1,600 Medicare discharges annually. Hospitals that qualified for the adjustment for the first half of FY 2014 and still meet the mileage criterion will continue to receive the adjustment without reapplying. Others must notify their Medicare Administrative Contractor before June 30 and provide documentation that they meet the mileage criterion to receive the adjustment. Hospitals that were classified as MDHs as of March 31 will be automatically reinstated as MDHs effective April 1, unless they were reclassified as a sole community hospital or asked to cancel their rural classification. AHA will issue a Special Bulletin with more information for members soon.

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