Medicare Compliance & Reimbursement
Hospice Pay May Shrink
According to the Government Accountability Office, the per diem payment rate for all hospice care was about 8 percent higher than the estimated average per diem cost of actually providing care in 2000, and more than 10 percent higher in 2001.
Translation: Current pay "may not reflect current patterns of care," according to the report.
As an example, the GAO cites nursing care costs provided during routine home care, which have changed considerably since the rates were first calculated. "More visits were provided during the first, and especially last, week of a hospice stay than during other times in the stay," the report reads.
Although the Centers for Medicare & Medicaid Services has agreed with the GAO recommendations to pursue more data collection, there may be a ray of hope for small hospices. The report found that on average small providers had higher estimated per diem costs than larger hospices.
To read the report, go to www.gao.gov/new.items/d0542.pdf.
Lesson Learned: A pay overhaul may be in the works for hospice providers.
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