CHA News

CMS Issues FFY 2021 LTCH PPS Final Rule

For CEOs, CFOs, government relations, post-acute care, quality & patient safety, and finance & reimbursement staff 

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The Centers for Medicare & Medicaid Services (CMS) has issued its long-term care hospital (LTCH) prospective payment system (PPS) final rule for federal fiscal year (FFY) 2021. The final rule is effective Oct. 1.  

CMS estimates that overall payments for LTCHs will decrease by 1.1%, or approximately $40 million, compared to FFY 2020. This decrease is largely attributed to the statutory requirement that, beginning in FFY 2021, all site-neutral cases will be paid the full site-neutral rate rather than the higher, blended rate. CMS did make any changes to the LTCH quality reporting program.   

A fact sheet on the final rule is available on CMS’ website. CHA will provide members with a detailed summary in the coming weeks.