Payments increased for CAHs

Healthcare Financial Management, March, 2004

Payments to critical access hospitals (CAHs) will increase from 100 percent to 101 percent of reasonable costs, CMS announced January 22. In its announcement, CMS also said it will allow these hospitals to use up to 25 beds for acute care services. Previously, CAHs were limited to 15 acute care beds or swing beds (those used for acute and post-acute care).

The changes became effective January 1, 2004, but fiscal intermediaries have until April 4, 2005, to implement these two provisions of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 aimed at improving services in rural areas.

To read the implementing transmittal, go to www.cms.hhs.gov/manuals/pm_trans/R68CP.pdf.>

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