Ongoing CMS settlement negotiations with about 2,200 hospitals are expected to cost the federal government at least $3 billion, according to parties involved in the deal.
CMS' hospital settlements seen costing at least $3 billion
The payments to hospitals will settle several similar years-long federal lawsuits in which those providers alleged CMS officials erred in calculating pay rate cuts needed to offset an increase for rural hospitals required by a 15-year-old law. The settlement process began when a federal appeals court struck down a lower court ruling that sided with the CMS.
The final amount the CMS will pay the hospitals involved in the lawsuits may never be known because the agency is not required to report it to either a court or the public, according to legal experts.
The deal was signed April 5 and all payments are expected by June 30, according to hospital and CMS officials.
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