Long-Term Care Hospital PPS: FY 2021 Final Rule

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Long-Term Care Hospital PPS: FY 2021 Final Rule

At Issue
On Sept. 3, the Centers for Medicare & Medicaid Services (CMS) issued the inpatient and long-term care hospital (LTCH) prospective payment systems (PPS) fiscal year (FY) 2021 final rule. This advisory covers the rule’s LTCH-related provisions. The AHA issued a separate Regulatory Advisory on the inpatient PPS provisions. The rule takes effect Oct. 1.

Our Take
The AHA appreciates the streamlined LTCH provisions in this rule, relative to prior years, which helps LTCH facilities focus on their COVID-19 responses. We note that in FY 2021, for the first time, no blended payments will apply to LTCH site-neutral cases. As such, we remain concerned that these cases continue to be materially underpaid, especially when paid the full site-neutral rate – as AHA has repeatedly communicated to CMS and other policymakers. View the entire Regulatory Advisory below.