CMS updates: 2-midnight policy and DSH allotments
The Centers for Medicare & Medicaid Services has continued to announced modifications to its implementation of the controversial "2-Midnight" inpatient admissions and medical review criteria.
Among other things, CMS is requesting Medicare Administrative Contractors (MACs) to re-review claims denials made during the “probe and educate” phase of implementation to make sure that MACs are applying CMS clarifications issued in September 2013 and January 2014.
Also of great importance to hospitals, CMS has published a notice announcing the preliminary federal disproportionate share hospital (DSH) allotments for fiscal year (FY) 2014, along with the preliminary federal share FY 2014 limits on aggregate DSH payments that states may make to institutions for mental diseases (IMD) and other mental health facilities.
The funding does not contain the DSH reductions for 2014 under the Affordable Care Act, which were eliminated by the Bipartisan Budget Act of 2013. The legislation also delayed the FY 2015 DSH reductions until FY 2016 while extending the DSH cuts by one year, to FY 2023.
The CMS notice also includes information regarding the calculation of the FY 2014 DSH allotments and FY 2014 IMD DSH limits.
