Medicare Could Save Billions at CAHs If Swing-Beds Were Reimbursed Using SNF PPS Rates

Dianne De La Mare

The Office of Inspector General (OIG) has released a report that indicates that swing-bed services provided at most critical access hospitals (CAHs) could have been provided at alternative facilities within 35 miles of the CAHs during FY 2010.

It is estimated that Medicare could have saved $4.1 billion over a 6-year period if payments for these swing-bed services at CAHs were made using skilled nursing facility (SNF) prospective payment system (PPS) rates. OIG recommends that CMS seek legislation to adjust CAH swing-bed reimbursement rates to the lower SNF PPS rates paid for similar services at alternative facilities. To obtain the report go to http://go.usa.gov/3aXdB