The AHA yesterday urged the Centers for Medicare & Medicaid Services to allow hospitals receiving periodic interim payments to carry out their accelerated payment repayment at cost settlement, as was initially communicated by the agency.

The association’s letter is in response to a change in directive from CMS that accelerated payments are to be recouped from PIP hospitals’ periodic payments until repayment is completed, rather than at cost settlement. As a result, “PIP hospitals will go several months without any Medicare inpatient reimbursement, which is contrary to the entire purpose of the PIP program” of providing this subset of hospitals “with a steady and predictable revenue stream,” AHA wrote.

The association also requested CMS make alternative repayment approaches available for all hospitals, such as direct payments to the Medicare administrative contractor, to allow additional flexibility during the COVID-19 public health emergency.

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