The 2018 IPPS Final Rule was put on display for public inspection on August 2, 2017 and is scheduled to be published in the Federal Register on Monday, August 14, 2017. The pre-publication version can be viewed HERE (Medicare DSH begins on page 771). SCA will be reviewing and analyzing the details of the final rule and its components and we will provide more detailed conclusions soon.
Probably the most important takeaway from the final rule for Medicare DSH hospitals is that CMS is FINALIZING as proposed to USE COST REPORT WORKSHEET S-10 AS A COMPONENT in determining a qualifying provider's FACTOR 3.
CMS states, "After consideration of the public comments we received, we are finalizing our proposal to incorporate 1 year of Worksheet S-10 data into the calculation of Factor 3 in FY 2018 in conjunction with data on low-income insured days for FYs 2012 and 2013. We will continue to use data from three cost reports, which will gradually incorporate data from Worksheet S-10 into the calculation of Factor 3."
With regards to auditing Worksheet S-10, CMS states that while "cost reports beginning in FY 2017 will be the first cost reports for which the Worksheet S-10 data will be subject to a desk review, we expect cost reports beginning in FY 2014, FY 2015, and FY 2016, to be subject to further scrutiny after submission."
Please keep in mind that providers have until September 30, 2017, to amend their FFY 2014 and FFY 2015 Worksheet S-10's per CMS' July notice and Transmittal 1863 in order for those updated values to be included in the the December 2017 Healthcare Cost Report Information System.
If you missed our cost report worksheet S-10 timing recommendations, you can them read HERE. Miss our overview of the cost report instructions? Go HERE. If you need a refresher on all things S-10, we written extensively on the topic. See everything we've authored on S-10 HERE! Stay tuned for our detailed analysis of the FY 2018 IPPS final rule to be posted later this week.
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