2005-06 long-term care PPS instructions published

Healthcare Financial Management, August, 2005

CMS has published the implementing transmittal for the update of the long term care hospital PPS rates for the payment year that began July 1. This revision to the CMS claims manual focuses on the financial aspects of the LTCH PPS and implements the transition from the current metropolitan statistical area designations to core based statistical area designations, meaning that for discharges on or after July 1, the core-based statistical area designation will be used for assigning a wage index value to LTCHs.

Under the 2006 rate year update, published May 6, the full 3.4 percent market basket update produces a standard federal rate of $38,086; in addition, the fixed loss outlier amount is $10,501. The budget neutrality adjustment is 0 percent.

To read the LTCH PPS update transmittal, go to www.cms.hhs.gov/manuals/pm_trans/R578CP.pdf.