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HCFA delays outpatient prospective payment system.(Health Care Financing Administration )
The federal Health Care Financing Administration (HCFA) has decided that it needs more time to put a prospective payment system (PPS) in place for Medicare outpatient services. It has pushed back the changeover to the new system from July 1 to Aug. 1.
The PPS will replace the current cost-based reimbursement system for all outpatient services, including partial-hospitalization programs. Details of the new system were first published in the April 7 Federal Register, giving providers less than three months to prepare.
Medicare's partial-hospitalization program has caused problems for numerous mental health providers, and the pending switch to the PPS doesn't promise to make life any easier. Providers fear that the change is premature.
A major area of concern is how the Medicare program's numerous fiscal intermediaries will administer the benefit under the new payment system. HCFA hasn't provided fundamental definitions such as what constitutes a "day" of service, leaving providers at the mercy of their fiscal intermediaries (see MHW, May 1).
HCFA opted for the delay after failing to meet ...
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