Home Health & Hospice Week

Industry Notes:

Recoupments To Hit Hospitals For DRG Payments That Were Supposed To Be Prorated For Home Health DCs

You may notice a chilling effect on hospital discharges to home health, following a new OIG report focusing on Medicare’s Post-Acute Care Transfer Policy.

Reminder: Last summer, the HHS Office of Inspector General noted that it would be investigating this issue yet again (see HHHW by AAPC, Vol. XXXI, No. 25). The watchdog agency wants to make sure no full DRG payments for hospital patients discharged “early” to home health are sneaking through to hospitals.

From January 2019 through December 2022, the OIG found Medicare improperly paid $41.4 million to acute-care hospitals for inpatient claims subject to the transfer policy, according to the report. But after CMS fixed malfunctioning edits in April 2022, “improper payments significantly decreased,” the OIG notes.

Thus, the OIG wants CMS to have its contractors recoup those overpayments from the hospitals and have those hospitals look for further overpayments. This activity may lead to some hospitals clamping down on home health referrals, experts warn.

The 23-page report is at https://oig.hhs.gov/oas/reports/ region9/92303016.pdf.

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