CMS Issues Update For Long-Term Care Hospital Payments

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Long-Term Care Hospitals

CMS on Tuesday issued a proposed 2.6% payment ratechange in 2009 for long-term care hospitals, CQHealthBeatreports. The payment rate change will apply to about 400 long-term carehospitals, which treat "medically complex cases," such as patientswith severe head trauma, those who must be on respirators and those who requireextensive rehabilitation, CQ HealthBeat reports. The revisedpayment rate and related policies would apply to services provided to peopledischarged from such hospitals on or after July 1.

The payment rate update represents a 3.5% increase in the hospital marketbasket, or the cost of goods and services used to provide inpatient care,reduced by 0.9% to offset coding changes from 2006, according to CQHealthBeat. CMS last year proposed a 0.71% increase in 2008 Medicarepayments for long-term care hospitals (Carey, CQ HealthBeat,1/22).

Reprintedwith permission from kaisernetwork.org. You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign upfor email delivery at kaisernetwork.org/email . The Kaiser Daily Health PolicyReport is published for kaisernetwork.org, a free service of The Henry J.Kaiser Family Foundation.

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