Universal Health Services, King of Prussia, Pa., announced it would receive about $35 million from the CMS as part of ongoing settlement negotiations taking place between the HHS agency and about 2,200 hospitals related to Medicare underpayments to rural hospitals.
CMS to pay Universal Health $35 million
The settlements, estimated by some to eventually total $3 billion, have resulted in previously announced agreements to pay HCA, Nashville, $271 million, and Tenet Healthcare Corp., Dallas, $84 million, by June 30. The payments to the hospitals will settle several similar years-long federal lawsuits in which providers alleged CMS officials erred in calculating pay rate cuts needed to offset an increase for rural hospitals required by the Balanced Budget Act of 1997.
UHS will end up getting about $30 million of the total after expenses and distributing portions attributable to third parties, according to a news release.
Also, like HCA and Tenet, UHS revealed it would have to pay the CMS for retroactive adjustments made to Supplemental Security Income ratios that are used for calculating Medicare Disproportionate Share Hospital reimbursements. The changes mean that UHS expected it would owe about $8 million, while HCA and Tenet said they owed $83 million and $51 million, respectively.
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