Medicare Proposes Payment Increase for Long-Term Care Hospitals

February 16, 2004

Medicare Proposes Payment Increase for Long-Term Care Hospitals

On January 30, 2004, the Centers for Medicare & Medicaid Services (CMS) issued a proposed rule that would increase the Medicare payment rates for long-term care hospitals (LTCHs) by 2.9% starting July 1, 2004. Medicare expects aggregate payments to these hospitals to increase to $2.33 billion during the 2005 rate year. Long-term care hospitals, in general, are defined as hospitals that have an average Medicare inpatient length of stay greater than 25 days. These hospitals typically provide extended medical . . .