January 02, 2015
In Shands v. Burwell, hundreds of hospitals are fighting in D.C. federal court to overturn a 0.2 percent rate cut that the Centers for Medicare & Medicaid Services introduced to offset an expected spending increase related its “two-midnight” policy on inpatient admissions. The suit accuses CMS of exceeding its authority and acting unreasonably by enacting the cut, which equates to more than $200 million annually … It’s a substantial amount of money, and it also is precedent-setting for a very common practice by CMS for how it determines budget-neutrality offsets,” McDermott+Consulting LLC principal Eric Zimmerman said.
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