Corporate Compliance

Watch those discharges: Postacute care transfer changes occur Oct. 1

Health Care Auditing Strategies, September 1, 2005

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Whether your hospital is ready or not, October 1 marks the beginning of a new era, one that won't be easy.

On that day, Medicare will stop full payments for postacute-care (PAC) transfer cases, in which patients fall under 182 DRGs. As of now, only 30 DRGs fall under this special designation.

Even those who don't understand the rules can understand what it means: Hospitals stand to lose $780 million in fiscal year (FY) 2006 alone--that's nearly 1% of Medicare payments to hospitals.

"It's going to be a tremendous hit to hospitals," says Don May, vice president for policy at the American Hospital Association. "Already [one-third] of the hospitals in the country lose money treating Medicare patients who stay in the hospital. This will only make it harder."

This is an excerpt from a member only article. To read the article in its entirety, please login.

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