The CMS said 121 hospitals will receive higher Medicare payments, retroactive to April 1, as a result of being reclassified to new geographic payment regions. The Medicare reform law set aside $900 million over three years to reimburse hospitals switched to higher-paying geographic areas. About 540 hospitals applied for reclassification. Connecticut, Michigan, New Jersey, Pennsylvania and South Dakota were among states with the most hospitals selected for reclassification. To qualify, hospitals had to meet at least one of eight criteria set forth by the CMS. Medicare reimbursement is partly based on an index that adjusts for regional differences in hospital wages. -- by Jeff Tieman
CMS announces winners in reclassification bid
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