The Greater New York Hospital Association said it plans to sue the CMS later this week over recently finalized Medicare regulations that the association said would shift $930 million from New York hospitals to New Jersey facilities over 10 years. The association said the lawsuit will be filed in U.S. District Court in New York and will challenge regulations that redraw labor markets around the U.S. The CMS uses the markets to determine Medicare reimbursement for hospital labor costs. Under the redrawn markets, hospitals in three New Jersey counties would be considered part of the more costly New York wage area and would receive higher compensation. The regulations take effect Oct. 1, the start of federal fiscal 2005. The association also said it will file an appeal of the regulations with CMS' provider reimbursement review board before Oct. 1. At deadline, New Jersey Hospital Association officials had not responded to a request for comment. A CMS spokesman said wage areas are changed every 10 years to reflect new census data. He described the process as "thorough and routine and required." The agency said it could not comment on the lawsuit because it had not yet been served. -- by Jeff Tieman
N.Y. hospitals to sue CMS over new wage areas
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