CMS recently released an MLN Matters article detailing the extension of the low-volume hospital payment adjustment (LVA) and the Medicare dependent hospital (MDH) program through December 16, 2022. Previously, these programs were set to expire on October 1, 2022.
A request, sent in writing, must be received by the appropriate Medicare Administrative Contractor (MAC) on or before November 16 to receive the applicable LVA payment. Eligible hospitals must have less than 3,800 total discharges on their most recently filed cost report and be located more than 15 road miles away from the nearest IPPS hospital. If the provider previously sent its MAC a letter requesting the LVA payment in anticipation of the program’s extension, it should confirm with the MAC no further steps are required.
Providers classified as an MDH as of September 30, 2022 will automatically receive an extension to their MDH status unless they requested a cancellation of their rural classification. Regulations also allowed for hospitals to apply for classification as a Sole Community Hospital (SCH) in the event the MDH program expired. As the program did not expire, any hospitals that applied to be an SCH will retain their MDH classification through the extension. If the provider requested a cancellation or applied to be an SCH, the MAC will send a letter providing specific information as to how the provider is impacted.
For more information about these programs and the related extension, please reach out to a professional at FORVIS or submit the Contact Us form below.