MDH payments for second half of FY 2014 - McDermott+Consulting

MDH payments for second half of FY 2014

The Centers for Medicare and Medicaid Services (CMS) posted a notice regarding how Medicare will be paying Medicare Dependent Hospitals (MDH) for the second half of Fiscal Year 2014.


The Medicare Dependent Hospital (MDH) program was extended for one year effective April 1, 2014 following the enactment of the legislation “Protecting Access to Medicare Act of 2014”, commonly referred to as PAMA. In May 2014, CMS published its annual proposed update for FY 2015 to the Inpatient Prospective Payment System which addressed the MDH program from October 1, 2014 through March 31, 2015.

This rule addresses the first six months of the MDH program not previously addressed. Consistent with past practices, CMS announced that hospitals that were classified as MDHs as of March 31, 2014, will automatically have their MDH status reinstated as effective April 1, 2014 with no need to reapply for MDH classification. However, the effective date of MDH status will not be retroactive to April 1, 2014 for (a) those hospitals classified as Sole Community Hospitals after April 1, 2014 and (b) those hospitals that requested cancellation of their rural classification status under § 412.103(b).

To read the full notice, click here.