HHS previously considered state provider taxes allowable, fully reimbursable costs for CAHs. However, in its final inpatient prospective payment system rule for fiscal year 2011, CMS changed the rule to determine the allowability of provider taxes on a case by case basis, according to the report.
Following this, Medicare auditors in Kentucky rejected the allowability of all or a portion CAH provider taxes based on what the KHA calls “unrelated” payments for indigent care.
The suit seeks to reverse the policy.
Read the AHA News Now report on CAH provider tax reimbursement.
Read previous coverage on CAH provider tax reimbursement:
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