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CMS head clarifies PPP funds’ impact on rural hospitals’ Medicare payments

The Centers for Medicare & Medicaid Services (CMS) does not intend for Paycheck Protection Program funds to impact Medicare payments to rural hospitals, CMS Administrator Seema Verma said in an August 6 tweet. “More guidance will be out soon that’ll explain how hospitals should report those funds on their Medicare Cost Reports,” she said. The American Hospital Association has advocated for CMS to permit hospitals to treat all COVID-19-related funds, including PPP and emergency relief funds, as grants in the cost report to prevent offsets that would affect cost-based reimbursement.

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