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Category: COVID-19

September 30 Deadline for CARES PRF Reporting Period 3

CARES Provider Relief Fund Reporting Period 3
 
Reminder – providers have until Friday, September 30, to file for Reporting Period 3 (RP3) of the CARES Provider Relief Fund (PRF). Even if $0 PRF was received in RP3, HRSA still requires confirmation (of $0 payments) in the PRF Reporting Portal.   
 
PRF received in RP3 relates to payments (>$10K) received from January 1, 2021 through June 30, 2021.  The period of availability associated with these payments is January 1, 2020 through June 30, 2022. The period of availability reflects COVID-19 expenses and lost revenues that may be used toward recognizing RP3 PRF payments (provided these expenses and lost revenues were not previously used towards PRF in RP1 or RP2). Additional resources for RP3 reporting can be found here on HRSA’s website. 
 
Please contact Fred Fisher at fred.fisher@toyonassociates.com with any questions. 
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CMS Proposes New Cost Reporting Instructions

CMS recently released new proposed Medicare cost reporting instructions, available for download here on the CMS website. Comments are due to CMS on July 22, and Toyon will be sharing our comments with more details over the coming weeks.  
 
CMS is proposing notable cost report changes to the following:
  • Worksheet S-10 Uncompensated Care (UC) reporting for Federal Fiscal Year 2023 (beginning on/after 10/1/2022) and subsequent years.
    • Amongst other proposed revisions, CMS proposes a significant change that UC cost represents “only the general short-term hospital inpatient and outpatient services billable under the hospital CMS Certification Number (CCN).”
    • CMS proposes a standard Worksheet S-10 data format under Exhibit 3B and Exhibit 3C.
  • Empirical DSH Medicaid eligible days reported using Exhibit 3A, with applicable instructions to §4004.1 and requirements at 42 CFR 413.24(f)(5)(i)(C) starting with Federal Fiscal Year 2023 cost reports.
  • Medicare bad debt reporting using Exhibit 2A, with applicable instructions to §4004.2 and requirements at CFR 413.24(f)(5)(i)(B) starting with Federal Fiscal Year 2023 cost reports.
  • COVID-19 PHE temporary expansion bed reporting. New cost reporting line effective March 1, 2020 through the end of the COVID-19 PHE.
  • Worksheet D-4 Organ Acquisition updates and additions. 
    • CMS updates cost reporting instructions to reflect the codification for Medicare organ acquisition payment policies at transplant hospitals as included in FR 73416 (December 27, 2021).
    • For cost reporting periods beginning on or after October 1, 2022, CMS proposes providers separately identify revenue for organs sold associated with Medicare Secondary Payer (MSP organs, subscript of line 66) and a separate subscripted line (informational only) for the transplant payment portion.
    • For cost reporting periods beginning on or after October 1, 2022, CMS proposes providers separately identify organs transplanted into Medicare beneficiaries, kidneys transplanted into Medicare Advantage (MA) beneficiaries, organs transplanted as Medicare Secondary Payer, and organs transplanted for all other payers (subscript line 75).    
  • Worksheet D-6 Allogeneic Hematopoietic Stem Cell Transplant (HSCT) Acquisition Costs
    • CMS proposes further changes to this new worksheet series to calculate inpatient reimbursement for allogeneic stem cell acquisition costs associated with Federal Fiscal Year 2021 cost reports (beginning on or after 10/1/2020).
    • CMS proposes to apply key changes (from the initial PRA package issued in November 2020) which include basing payment on the ratio of Medicare transplants to total transplants and reporting all-payer charges related to donors (follows the same methodology as solid organ transplants).
Please feel free to share questions or suggestions for comments to Fred Fisher, fred.fisher@toyonsassociates.com. Specific to organ acquisition, please contact Robert Howey, robert.howey@toyonassociates.com.
 
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FFY 2023 IPPS PROPOSED RULE COMMENTS DUE JUNE 17, 5 PM EDT

This Friday June 17th at 5 PM, comments are due on CMS’s proposed FFY 2023 IPPS rate setting.   In commenting – 

  • Refer to file code CMS–1771–P.  
  • Submit electronically through this regulation link then select the COMMENT button at left, below the title; or
  • Submitted by mail to: Centers for Medicare &Medicaid Services, Department of Health and Human Services, Attention: CMS–1771–P, P.O. Box 8013, Baltimore, MD 21244–1850.

Please feel free to see Toyon’s comments here on our website.  Providers may also download a word version of these comments with designated [highlighted] areas to populate for your hospital or health system.  

Toyon’s comments are focused on reimbursement issues, as well as cost reporting proposals requiring additional clarification, as summarized in the table below.

# Issue FFY 2023 Proposal Summarized  Comment
1

Market Basket

2.7% Update

3.1% Market Basket -0.4% ACA Adjustment

8.0% Update

Based on recent Medicare cost increases[1]

2 Outliers

$43,214 

Fixed Loss Threshold  (40% increase from PY)

Reduce threshold in anticipation of fewer COVID-19 hospitalizations in FFY 2023
3

UC DSH Factor 1

-$542M

Reduction to FFY 2023 UC DSH Payments

-$542M

Reduction to FFY 2023 UC DSH Payments

Increase Factor 1 discharge adjustment considering forecasts of increased Medicare utilization

4 UC DSH Factor 2

65.71%

-0.03 from prior yr

-0.07 from penultimate yr

65.71%

-0.03 from prior yr

-0.07 from penultimate yr

Increase Factor 2 to reflect projections of increases to the national uninsured population

5 Empirical DSH Section 1115 Waiver Days Medicaid patients regarded as eligible from 1115 Waiver w/ essential health benefits (EHB) Clarification on premium assistance days “for which the premium assistance is equal to or greater than 90 percent of the cost of the coverage”
6 NP95 Respirator Payments Reimbursement for the incremental cost of using wholly domestically produced N95 respirators Supported and request CMS reimburse for all patients (not only Medicare) in bi-weekly lump sum payments

Please feel free to email Fred Fisher at fred.fisher@toyonassociates.com with any questions.

[1] Analysis of Medicare cost per discharge change from FFY 2019 to FFY 2020 per Medicare cost report data from the Healthcare Cost Report Information System (HCRIS).  Medicare cost per Worksheet D-1 Part II, Line 49, Column 1.  Medicare discharges per Worksheet S-3 Part I L14.00 C13.00.

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