What’s happening: In recently submitted comments, CHA requested that the Centers for Medicare & Medicaid Services (CMS) revise the fixed-loss outlier threshold in the long-term care hospital (LTCH) prospective payment system.
What else to know: CHA’s letter urged CMS to mitigate the effects of recent growth in the fixed-loss outlier amount, which has inappropriately reduced payment for LTCHs.
Specifically, CHA encourages CMS to revert to a market basket-based methodology for calculating the fixed-loss amount, or otherwise phase in the increased fixed-loss amounts and implement a cap on year-to-year changes to reduce outlier payment volatility.
