Other Issuances: CMS updates three-day rule guidance, OIG audits bad debt
Medicare Weekly Update, September 14, 2010
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CMS posts updated three-day rule billing guidance
On September 9, CMS posted a message to its acute care hospital listserv to clarify and announce further billing guidance regarding the three-day payment window. The message updates and supersedes a discussion held on the August 26 Hospital Open Door Forum.
OIG audits Part A bad debt
On August 26, the OIG issued a review of Medicare Part A bad debts at Kindred Healthcare, Bay Area, for the fiscal year ending August 31, 2005. The OIG determined that, for all 95 of the bad debts reviewed: (1) the bad debts were related to Medicare covered services and derived from unpaid deductible and coinsurance amounts, (2) Kindred made reasonable collection efforts, (3) the debts were actually uncollectible when claimed as worthless, and (4) sound business judgment established there was no likelihood of recovery at any time in the future. In addition, Kindred reduced its bad debts by amounts recovered from previously written- off bad debts.
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