CMS has extended the Medicare Dependent Hospital and Low-Volume Hospital programs through the second half of fiscal year 2014 (April through September of this year), in accordance with the Protecting Access to Medicare Act of 2014.
The MDH Program provides special reimbursement rates to hospitals that serve high volumes of Medicare patients. A hospital qualifies for the MDH Program if it is located in a rural area, has 100 beds or fewer, is not a "sole community hospital" and has at least 60 percent of inpatient days or discharges covered by Medicare.
Meanwhile, the LVH Program affects hospitals in rural communities that may not serve a high-volume of patients. These hospitals get enhanced reimbursements if they are more than 15 road miles from another comparable hospital and have less than 1,600 Medicare discharges per year.
In March, CMS extended the programs through the first six months of FY 2014 to comply with the Pathway for SGR Reform Act of 2013. Both programs had expired in October 2013. Hospitals that qualified for the low-volume adjustment during the first six months of FY 2014 will continue to qualify without reapplying. Others need to notify their Medicare administrative contractors in writing and provide documentation that they meet the mileage criterion by June 30.
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