Medicare Compliance & Reimbursement

Industry Notes:

Two-Midnight Rule Court Case Adjusts Some Hospitals' Medicare Pay

Some providers will have a little more money in their pockets this holiday season, according to a release from CMS.

Why: A recent court case and its subsequent settlement concerning the Two-Midnight rule challenged "the imposition of a 0.2 percent downward adjustment to the Inpatient Prospective Payment System (IPPS)" thatbegin in 2014 and impacted "the standardized amount," CMS Transmittal 1969 from Nov. 9 said. The case also addressed "estimated increases in expendituresresulting from the 2-midnight policy" thathad been "adopted."

Result: Starting on Dec. 11, 2017, specific hospitals identified in Change Request (CR) 10337 will receive an interest adjustment for "discharges occurring during the period from June 1, 2017 to May 31, 2018," noted the Medicare guidance. The Medicare Administrative Contractors (MACs) are instructed to factor in the interest changes particularly for the hospitals affected and only for the dates indicated in the CR.

Resource: See CR 10337 at: www.cms.gov/Regulations-and-Guidance/Guidance/Transmittals/2017Downloads/R1969OTN.pdf.

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