Cost Reporting Rule to be Implemented Sooner than Expected

The Centers for Medicare & Medicaid Services (CMS) this month released the Medicare Inpatient Prospective Payment System (IPPS) proposed rule for federal fiscal year (FFY) 2018, which begins October 1, 2017. CMS intends to move forward with last year’s proposal on how to distribute the uncompensated care pool (UCP) based on charity care and non-Medicare bad debts from Worksheet S-10 beginning in FFY 2018. Key highlights of this proposed rule include:

  • The 2014 worksheet S-10 will now be used to account for one-third of the FFY 2018 uncompensated care payment;
  • CMS will phase out the “Days Proxy” method to determine uncompensated care payment over the next two years; and
  • By FFY 2020, worksheet S-10 will account for all of a facility’s uncompensated care payment.

For better or worse, uncompensated care payments will be impacted by the latest proposed rule, and much sooner than expected. Each hospital should develop a response strategy and NAVEOS, a Virginia-based firm and leader in governmental reimbursement, is positioned to assist with that. Please contact Charlene Mathis at 571-455-5335 or of NAVEOS, a VHHA Shared Services partner, to learn how NAVEOS analytic tools can help hospitals receive the dollars they deserve.