The federal payment rate is expected to increase by 2.7% after accounting for the 2.5% FY20 annual update, increased outlier payments and “other factors,” according to a fact sheet. For the duration of the public health emergency, all admissions will be counted in the numerator of the Discharge Payment Percentage calculation. LTCH: Unit of payment: Day: Day: 60-day episode: Discharge: Discharge: Payment per unit: $148.62 per day 1 $330 per day $2,800 per episode $16,649 per discharge $35,200 per discharge Avg. Implementation of the Long Term Care Hospital (LTCH) Discharge Payment Percentage (DPP) Payment Adjustment Change Request (CR) 11616 prepares the Medicare claims processing systems to calculate the LTCH Prospective Payment System (PPS) payment when an LTCH is subject to the Discharge Payment Percentage (DPP) payment adjustment. 12. Reimbursement Rates – LTCH. 6 months immediately preceding the ‘penalty year’ the LTCH discharge percentage is at least 50% •Example: 5 consecutive months during July-December 2021 If the final LTCH discharge percentage for the ‘penalty year’ is ultimately <50%, then “the payment adjustment delay would be Since FFY 2016, CMS has been providing each LTCH their discharge payment percentage for cost reporting periods during or after FFY 2016. Any LTCH discharge readmitted within three days is also considered an interrupted stay. LTCH providers submit one admit through discharge claim for the stay, however, that is usually done by submitting claims in 60-day increments and adjusting from the previously paid claim. In FY 2020, CMS will implement the LTCH Discharge Payment Percentage An interrupted stay becomes one discharge and one payment. CR 11742 updates the LTCH Pricer software used in Original Medicare claims processing. High cost outlier. A. The payment rates and policies described in the IPPS/LTCH final rule (CMS-1716-F) affect Medicare’s operating and capital payments for short-term acute care hospital inpatient services and services provided in long- term care hospitals paid under their respective prospective applicable discharge threshold (less than 50% of patients for whom the standard LTCH PPS payment is made). They will count as discharges paid the LTCH PPS standard payment rate. A hospital receives a single payment for the stay based on the payment classification – MS-DRGs under the IPPS and MS-LTC-DRGs under the LTCH PPS – assigned at discharge. A standard federal payment net rate increase of 2.5 percentage points (2.9% standard update minus 0.4% multifactor productivity adjustment) The standard federal payment rate be set at $43,849.28 ; A total labor-related share for FY 2021 of 68% (the sum of 63.6% for the operating cost and 4.4% for the labor-related share of capital) For several years there has been a transitional blended rate used. ̶In FY 2018, site neutral payment will be fully implemented. Circumstances qualifying for an LTCH discharge (Payment under LTCH PPS) ... IRF, or SNF and then readmitted to the LTCH within a fixed period of days. Change Request (CR) 11616 prepares the Medicare claims processing systems to calculate the LTCH Prospective Payment System (PPS) payment when an LTCH is subject to the Discharge Payment Percentage (DPP) payment adjustment. For the LTCH Quality Reporting Program (QRP), which can cut payments to LTCHs by 2 percentage points, CMS adopted two new quality measures. a LTCH discharge payment percentage of less than 50%. The initial payment level (base rate) for a typical discharge in fiscal year 2014 is $40,607. Background: On February 14, 2020, Change Request (CR) 11616 titled Implementation of the Long Term Care Hospital (LTCH) Discharge Payment Percentage (DPP) Payment Adjustment was issued to prepare the Medicare claims processing systems to calculate the LTCH PPS payment when an LTCH is the average LTCH case.3 Setting the payment rates The PPS payment rates cover all operating and capital costs that LTCHs would be expected to incur in furnishing covered services. This reflects the typical resources used for treating such a patient. This mandate would be effective for discharges occurring in cost reporting periods during or after FFY 2021. 4 . CMS is also waiving some site-neutral payment provisions for LTCHs. We know your business is rapidly adapting to the global COVID-19 outbreak. CMS uses the following criteria in order to identify cases eligible for a standard LTCH PPS payment: The LTCH discharge does not have a principal diagnosis relating to a psychiatric ... -0.5 percentage points Wage Index Budget Neutrality Adjustment 1.0064747 Budget Neutrality Adjustment (as a result of Elimination of 25- This increase accounts for the proposed FY 2020 standard federal rate update of 2.7 percent, as well as an estimated decrease in outlier payments and other factors. In FY 2020, LTCH PPS payments for discharges paid using the standard LTCH payment rate are expected to increase by 2.3 percent. The new version includes the payment policy for an LTCH that is subject to the Discharge Payment Percentage (DPP) payment adjustment described in CR 11616. On April 26, 2013, the Centers for Medicare & Medicaid Services (“CMS”) released the proposed update to the Medicare long-term acute care hospital prospective payment system (“LTCH PPS”) policies and payment rates for fiscal year (“FY”) 2014. This blended rate will end this year. CMS expects approximately 55% of LTCH cases to meet the patient-level criteria for exclusion from the site neutral payment rate in FY 2017; those cases will be paid based on the LTCH … If you need assistance with your Wolters Kluwer products or would like to get more information on a complimentary Guest Pass to any of our online products, please contact your representative. Under the LTCH PPS, if the discharge is excluded from the site neutral payment rate, you are paid for each Medicare patient based on the MS-LTC-DRG to which that patient’s stay is grouped. ̶Discharges that do not meet the critical conditions will be paid ½ the site neutral payment and ½ LTCH PPS rate. Revised: October 2013 This document does not reflect proposed legislation length-of-stay: 2 years: 27.0 days---13.3 days: 26.7 days: Total Expenditures (Billions) $56.3 2: $22.9: $16.9 LTCH Discharge Payment Percentage 50% rule: At least 50% of all discharges must be reimbursed at LTACH rates to preserve facility’s eligibility for LTACH reimbursements (i.e., 50% critical care or vent patients). Allows a long-term care hospital (LTCH) to admit Medicare patients during the COVID-19 public health emergency period to meet the demands of the emergency without concern about the effect of those patients on the calculation of their discharge payment percentage (which generally requires a 25-day average length of stay as a In addition, the CR includes new payment policy for the Novel Coronavirus Disease, COVID-19. threshold adjustment (you are eligible for the full per-discharge payment under the LTCH PPS): If a patient transferred from an acute care hospital that already qualifies for outlier payments, the admission will not count as part of the LTCH’s allowable percentage from that hospital; If the LTCH exceeds its threshold during a cost reporting year, The specified period of time is 9 days for an acute care hospital, 27 days for an IRF, and 45 days for a SNF. Beginning in FY 2016, under the statutory dual-rate LTCH PPS payment system, only certain discharges receive the LTCH PPS standard payment amount with the remaining discharges receiving a lower site neutral payment rate. The LTCH discharge payment percent is the percent of all Medicare FFS discharges that are paid the standard LTCH payment rate, and not the site neutral payment rate. 3 Long-term care hospitals payment system paymentbasics (SNF), stays for a specified period, then goes back to the same LTCH. Rate of potentially preventable hospital readmissions 30 days after discharge from an LTCH; Successful return to home and community: (Q4 2017_Q3 2019) Rate of successful return to home or community from an LTCH; Payment & value of care: (Q4 2017_Q3 2019) Medicare Spending Per Beneficiary (MSPB) for patients in LTCHs *New measures (3): The law includes a reinstatement process for LTCHs that fail to meet the required discharge threshold percentage in a particular year. A hospital receives a single payment for the case based on the payment classification – MS-DRGs under the IPPS and MS-LTC-DRGs under the LTCH PPS – assigned at discharge. If not, all discharges for future cost reporting periods will be paid at IPPS-comparable rates. for payment under the LTCH PPS, all discharges will paid an IPPS comparable amount, subject to a “process for reinstatement.” ... CMS’s proposed implementation of the 50 percent discharge payment percentage requirement would take too many years to resolve an LTCH provider’s . New LTCH admissions on or after Oct. 1, 2018, are reimbursed as follows: Standard LTCH PPS payment rate: In order to receive the standard LTCH PPS rate, the LTCH admission must occur within one day of a hospital discharge, which includes discharges from military or U.S. Department of Veterans Affairs hospitals. Final PPS payment is based upon the discharge bill. They are subject to a 2% reduction in the next year's percentage increase in the market basket. 3-7 Simulated LTCH-level aggregate margins under current payment system and the alternative LTCH payment model with simulated changes in LTCH admission patterns – Number of LTCHs with specified margin ..... 136 3-8 Simulated decreases in LTCH-level discharges relative to the current payment The site neutral payment will be phased in during FY 2016 and 2017. 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