Home Health & Hospice Week

Industry Note:

Medicare Cracks Down On Transfer Prorations

You may see increased pushback from hospitals that had eluded proration of DRGs for patients discharged to home care.

"A post-acute transfer edit in the Fiscal In-termediary Standard System (FISS) has been updated to add the home health agency CMS Certification Number (CCN) range XX9500 - XX9799," explains HH Medicare Administrative Contractor National Government Services in a message to providers. "Inpatient Prospective Payment System (IPPS) acute hospital claims in history with a discharge to home that did not edit when a home health claim was present in claims history will be adjusted to change the patient status code to ensure it accurately applies the IPPS post-acute transfer policy," NGS says in the message.

In a report last year, the HHS Office of In-spector General highlighted the problem of the claims system failing to prorate hospital DRG payments when the post-acute transfer provision applied (see Eli’s HCW, Vol. XXII, No. 22).

Reminder: Under Medicare’s post acute transfer policy, hospitals’ DRG payments get prorated if they discharge a patient to home care before the median length of stay. The patient must go to home care-within three days of discharge to trigger the proration. CMS expanded the policy to 273 DRGs in 2008. When the policy began in 1999, it applied to only 10 DRGs.

Other Articles in this issue of

Home Health & Hospice Week

View All