GAO finds per diem rate for hospice care higher than estimate
Compliance Monitor, October 27, 2004
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The per diem payment rate for all hospice care was about 8% higher in 2000 than the estimated average per diem cost of providing hospice, and more than 10% higher in 2001, according to a Government Accountability Office (GAO) report released October 15.
GAO found that the relationship between payment rates and costs varied across the payment categories and types of hospices.
For example, the agency estimates that the per diem payment rate for all home hospice care was almost 10% higher than average per diem costs in 2000, and more than 12% higher in 2001.
Small hospices had higher estimated average per diem costs than did medium or large hospices overall and for each of the four per diem payment categories in 2001, the report says.
GAO recommends that CMS collect comprehensive, patient-specific utilization and cost data on hospice visits and services to determine whether modifications to the payment methodology are needed, including any adjustments needed for small providers.
To view the report, click here.
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