The Greater New York Hospital Association filed an appeal with the CMS' Provider Reimbursement Review Board over a controversial new Medicare rule determining how hospitals are reimbursed for local labor costs. The appeal is a necessary step to exhaust all administrative remedies before the association can file a federal lawsuit against HHS to reverse the rule. As of Oct. 1, hospitals in three New Jersey counties will move into the New York wage-index area under the new rule, ultimately increasing the New Jersey hospitals' Medicare reimbursement while decreasing reimbursement for New York hospitals already in that wage-index area, the GNYHA charged. The association contended that the expansion of the wage-index area will cost New York hospitals $53 million in fiscal 2005 and $980 million over the next 10 years. The appeal specifically asks the review board to expedite judicial review so that the association can take the matter to federal court, said Susan Waltman, senior vice president and general counsel for the GNYHA. -- by Cinda Becker
GNYHA begins attack against wage-index rule
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