The Centers for Medicare & Medicaid Services today issued a proposed rule
for the long-term care hospital (LTCH) prospective payment system for fiscal year 2023. The rule would increase aggregate payments by approximately $25 million relative to FY 2022. This includes an increase for both types of LTCH cases — higher-acuity cases that are paid the standard LTCH PPS rate (+$18 million) and the remaining lower-acuity cases (28% of all cases) that are paid a site-neutral rate (+$8 million). Based on its expectation for the continued reduction of COVID-19 hospitalizations, the agency proposes to return to using the most recent data available — FY 2021 claims and FY 2020 cost report data — to set payment rates, with certain proposed modifications.