CMS has revoked Wyoming Medical Center's "sole community provider" status, which accounts for roughly $8 million in annual Medicare reimbursements, according to a Billings Gazette report.
The move is retroactive to Jan. 1, 2010, meaning the Casper, Wyo.-based hospital will have to return roughly $15.7 million back to CMS within the next six to 18 months, according to the report.
WMC officially lost its "sole community provider" status because Mountain View Regional Hospital, a physician-owned hospital that opened three years ago in Casper, now handles more than 8 percent of the area's inpatient volume.
A hospital earns "sole community provider" status if it offers a full range of services based on the community needs regardless of the profitability of each service. A hospital must also be a designated number of miles away (generally between 25 and 35 miles) from other similar hospitals. CMS has compensated WMC since 1992 to offset some of its losses.
WMC CEO Vickie Diamond said the most shocking part wasn't the actual announcement — it was that CMS wanted payments retroactive to last year, according to the report.
The hospital plans to appeal the decision and is not expected to make any major cuts at this time.
The move is retroactive to Jan. 1, 2010, meaning the Casper, Wyo.-based hospital will have to return roughly $15.7 million back to CMS within the next six to 18 months, according to the report.
WMC officially lost its "sole community provider" status because Mountain View Regional Hospital, a physician-owned hospital that opened three years ago in Casper, now handles more than 8 percent of the area's inpatient volume.
A hospital earns "sole community provider" status if it offers a full range of services based on the community needs regardless of the profitability of each service. A hospital must also be a designated number of miles away (generally between 25 and 35 miles) from other similar hospitals. CMS has compensated WMC since 1992 to offset some of its losses.
WMC CEO Vickie Diamond said the most shocking part wasn't the actual announcement — it was that CMS wanted payments retroactive to last year, according to the report.
The hospital plans to appeal the decision and is not expected to make any major cuts at this time.
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