Medicare Compliance & Reimbursement

Rural providers get breathing room on beds, plus $900 million over next ten years.

Good news for critical access hospitals.

A much needed shot in the arm is on its way as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 signed in to law last December.

The Centers for Medicare & Medicaid Services Jan. 22 unveiled new policies that will boost CAH funding for inpatient and outpatient services to Medicare beneficiaries by over 100 percent. CAHs can look forward to more flexibility for acute care services as the number of allowable acute beds has been upped from 15 to 25. These beds can be designated as acute care or swing beds for post-acute care. 

"I am pleased that Congress has worked with the administration to bolster services to people with Medicare living in rural areas," said Health and Human Services Secretary Tommy Thompson. "We believe the rural provisions in the new Medicare law will have a major positive impact on the delivery of health care to rural beneficiaries."