CMS proposal covers LTACs, GME

A CMS proposed regulation on long-term acute-care hospital payments also would revise payments for teaching hospitals. The proposal would require teaching hospitals to pay at least 90% of the total costs of training residents in the nonhospital setting, down from the current level of 100%. It also would set the marketbasket updates for LTACs at 0.71% in rate year 2008 and extend the 25% threshold to virtually all LTACs with more than 25% of patients from a single referring hospital, regardless of the hospital’s location. Overall, the CMS said it expects to make about $4.4 billion in Medicare payments to approximately 390 long-term acute-care hospitals in 2008. Read the proposal. -- by Matthew DoBias