Proposed CMS regulations would limit the use of intergovernmental transfers, rework certified public expenditures and alter the Medicaid upper-payment limit to save close to $4 billion over five years. The proposed regulations narrow the definition of a public hospital and say that Medicaid payments to healthcare providers operated by local governments cannot exceed costs. According to the CMS, the changes potentially could affect 1,153 hospitals operated by local governments or hospital districts, 822 nursing homes and 113 intermediate-care centers for the mentally retarded. While some healthcare providers may lose revenues in light of this rule, those revenues were likely in excess of costs or may have been financed using methods that did not permit the provider to retain payments received, according to the proposed regulations. Read the proposal. -- by Matthew DoBias
CMS proposes big Medicaid changes
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