FFY 2023 IPPS Final Rule: Medicare Dependent Hospital (MDH) Status Expiration

MDH status expired effective FFY 2023. The estimated impact to hospital payments is -$600 million. MDHs applying for Sole Community Hospital (SCH) status for all of FFY 2023 must apply by September 1, 2022. Qualifying hospitals for SCH status must meet regulations at 42 CFR § 412.92. Per CMS, MDHs applying for SCH status must request that, if approved as an SCH, the SCH status be effective with the expiration of the MDH program (September 30, 2022). If the MDH does not apply by the September 1, 2022 deadline, the hospital is then subject to the usual effective date for SCH classification; which is the date the MAC receives the complete application as specified at § 412.92(b)(2)(i).

For more information, please contact Scott Besler at (925) 685-9312 or scott.besler@toyonassociates.com.