Medicare paid new hospitals three times more for their capital costs than they would have been paid under the inpatient prospective payment system (IPPS), according to an audit report from the Office of Inspector General, Healthcare Finance reports.
The report revealed the new hospital capital cost exemption of the IPPS caused Medicare to incur up to $423.2 million in costs between 2012 and 2018. The audit concluded Medicare could have saved $283 million on capital costs in that period had hospitals been paid through IPPS.
Medicare regulations require that established hospitals be paid for capital costs through the IPPS, regulations which also allow new hospitals to be exempt from the IPPS payment methodology for capital costs and, instead, to be paid for these costs on a cost reimbursement basis for their first two years of operation. Read more.
Related Posts
Envision Sues UnitedHealthcare Over Allegedly Denied ER Claims
Envision CEO Jim Rechtin alleges UnitedHealthcare routinely denied claims for commercial members who were among the sickest and sought care at an emergency room.
September 9, 2022
Mayo Clinic Threatens to Pull Billions in Investments Over Proposed Legislation
Mayo Clinic has given Minnesota Gov. Tim Walz and state lawmakers an ultimatum over two bills that aim to increase nurse staffing levels and rein in health care costs: Gut the bills or the nonprofit hospital will pull billions in planned investments out of the state.
May 8, 2023
Government Watchdogs Increasingly Targeting Home Care Agencies
Right now, regulation and standardization varies greatly from state to state.
February 18, 2022
With DEA Regulations Looming, Digital Health Investment Plummets to Pre-Pandemic Levels
This comes as the public health emergency’s end also nears, potentially disrupting telehealth allowances and ending flexible controlled substances regulations.
April 5, 2023