CMS issues FY 2023 final rule for long-term care hospitals

The Centers for Medicare & Medicaid Services today issued a final rule for the long-term care hospital prospective payment system for fiscal year 2023, which increases aggregate Medicare payments by approximately $71 million relative to FY 2022. This includes an increase for both types of LTCH cases — higher-acuity cases that are paid the standard LTCH PPS rate (+$61 million) and the remaining lower-acuity cases (28% of all cases) that are paid a site-neutral rate (+$9 million). These figures also include small adjustments for high-cost and short-stay outlier cases paid a standard LTCH PPS rate. Based on CMS’ expectation that COVID-19 hospitalizations will continue to decline, the rule resumes using the most recent data available (FY 2021 claims and FY 2020 cost report data) to set payment rates, with some modifications.