AHA urges CMS to reconsider its LTCH payment schedule

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The American Hospital Association is urging CMS to change its proposed long-term care hospital prospective payment system for fiscal year 2027.

Nearly a quarter of long-term care hospitals closed since 2016 when the dual-rate payment system went into effect. 

“We therefore urge CMS to take action to increase reimbursement for LTCHs, avoid further closures in the field and help maintain access to this critical care for Medicare beneficiaries,” the June 8 AHA comment said.

To improve long-term care hospital finances, the AHA urged CMS to 

  • Revisit the market basket forecast
  • Work with Congress to reduce the productivity adjustment
  • Finalize its proposed freeze to the high-cost outlier fixed-loss amount
  • Make additional outlier policy changes to avoid disruptions to care

The AHA said it would submit separate comments on the rule’s inpatient PPS and Comprehensive Care For Joint Replacement Expanded Model Proposals, according to a June 8 news release.

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