CMS finalizes FY 2020 payment update for long-term care hospitals

The Centers for Medicare & Medicaid Services late today issued its long-term care hospital prospective payment system final rule for fiscal year 2020. Under the rule, payments would increase by 1.0%, $43 million, relative to FY 2019. This net increase is comprised of a $91 million increase for standard-rate cases and a $49 million decrease for site-neutral cases. Also, as mandated by law, CMS finalized a payment cut for LTCHs that have fewer than 50% of cases qualifying for the standard rate. This policy includes a process to determine how providers can return to "50% Rule" compliance. CMS also finalized the adoption of two new quality measures on transfer of patient health information in the LTCH Quality Reporting Program, as well as the adoption of several standardized patient assessment data elements.