Uncompensated Care Costs Driving Hospital Payment

On August 2, CMS released the Medicare Federal Fiscal Year (FFY) 2018 IPPS Final Rule, which determines FFY 2018 Medicare payments. Importantly, uncompensated care costs are now being used to develop Medicare Disproportionate Share (DSH) Uncompensated Care payments.

Why this is important

Toyon has found many hospitals are still preparing for this transition. Like the Medicare wage index, identifying and reporting uncompensated care costs goes beyond traditional cost report preparation, requiring an additional scope of work to ensure all allowable uninsured, under-insured and bad debt costs are recognized as uncompensated care and can withstand Medicare audit.
Preparing for change
Toyon will perform a projection and analysis of your hospital’s FFY 2018 Medicare revenue at no charge. Our analysis will calculate the financial impact from every $1M increase in identified uncompensated care cost reported on your hospital’s Medicare cost report worksheet S-10.
The CMS deadline
Cost report revisions for FFY 2019 Uncompensated Care payments are due September 30, 2017.
We are here to help
Please reach out to Fred Fisher at 888.514.9312 or fred.fisher@toyonassociates.com


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