The Centers for Medicare & Medicaid Services today issued a final rule for the long-term care hospital prospective payment system for fiscal year 2021. Under the rule, net payments for LTCHs will decrease by 1.1% (-$40 million) relative to FY 2020 payments. This net decrease is largely due to a reduction in payment for site-neutral cases, which account for 25% of all cases. Specifically, in FY 2021 and beyond, site-neutral cases will be paid the full site-neutral rate, rather than the higher, blended rate that was previously in effect for a transition period. CMS did not make any changes or updates to the LTCH quality reporting program.

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