HealthConnect Header

March 28, 2014 

Quick Links

Murer Consultants, Inc. 

 

Cherilyn G. Murer, JD, CRA 

President/CEO 

cmurer@murer.com

 

Michael A. Murer, JD 

Executive Vice President 

mmurer@murer.com

 

Lyndean L. Brick, JD

Senior Vice President 

lbrick@murer.com

  

19065 Hickory Creek Drive 

Suite 115

Mokena, Illinois 60448

(708) 478-7030

Fax:  (708) 478-7094   

Join Our Mailing List!

 

LTACH ALERT

    

A pending SGR Bill (HR 4302), entitled the "Protecting Access to Medicare Act of 2014", passed in the House yesterday which contains substantive technical changes to the Pathway to SGR Reform Act, put forth in December of 2013. 

 

In the Pathway to SGR Reform Act of 2013 containing amendments to Medicare Conditions of Participation regarding LTACHs, section 1206(b)(2) initially stipulated that no exceptions be made under the moratorium for non-grandfathered initiation and expansion of LTACH beds.   In the pending SGR bill (HR 4302), however, exceptions were identified which are similar to 2007 moratorium exceptions.  These new rules deal principally with initiation of new hospitals and are not explicit related to expansion of beds.     


Pursuant to Section 112 of the pending SGR Bill, it proffers additional exceptions for certain long term care hospitals:

 

"The moratorium ... shall not apply to a long term care hospital that -

 

(a)  Began its qualifying period for payment as a long term care hospital under section 412.23(e) of title 42, Code of Federal Regulations, on or before the date of enactment of this paragraph;

(b)  Has a binding written agreement as of the date of the enactment of this paragraph with an outside, unrelated party for the actual construction, renovation, lease, or demolition for a long-term care hospital, and has expended, before such date of enactment, at least 10 percent of the estimated cost of the project (or, if less, $2,500,000); or

 

(c)  Has obtained an approved certificate of need in a State where one is required on or before such date of enactment."

 

In addition, the Pathway to SGR Reform Act of 2013 also initially extended a moratorium on LTACH development for a period beginning on January 1, 2015 and ending on September 30, 2017.  This January 2015 date permits LTACH development to continue until the deadline.  Notably, the pending SGR bill eliminates the January 1, 2015 deadline and changes the moratorium start date to the date of the enactment of this Bill into law.  This is significant because the enactment could potentially occur before the prior anticipated development deadline of January 2015.   

 

 Murer Consultants will continue to monitor the Bill as it progresses through Congress and identify any further significant developments as we become aware of them.  Please reach out to Murer Consultants with any questions, comments, or strategic positioning opportunities related to the Proposed Rule or other issues or problems you may be facing.

 


Murer Consultants