Long-Term Care Hospitals’ Bad Debt Row Goes to Appeals Court

April 20, 2021, 6:11 PM

A group of long-term care hospitals will argue Thursday that a federal appeals court must reverse a decision that cost the providers about $3.7 million in payments for Medicare and Medicaid patients’ unpaid deductibles and co-payments.

The U.S. Court of Appeals for the D.C. Circuit will hear oral arguments on whether the Centers for Medicare and Medicaid Services made a change to the bad debt policy without first notifying and getting comments from affected providers, in violation of the Medicare Act’s administrative requirements, then implemented the change despite a moratorium.

The hospitals, operated by subsidiaries of LifeCare Management Services, are ...

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