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Long-Term Care Hospitals Get Closer to Collecting Bad Debt

Aug. 22, 2019, 7:04 PM

Seventy-five long-term care hospitals located in 26 states are a step closer to collecting over $20 million in reimbursements from Medicare to cover indigent patients’ bad debts under a ruling by a federal trial court in D.C.

The U.S. Health and Human Services Department violated federal law when it didn’t ask providers to first weigh in before imposing new prerequisites on facilities when they seek reimbursement for beneficiaries’ unpaid deductibles and co-insurance obligations, the U.S. District Court for the District of Columbia said Aug. 22.

The hospitals are all operated by subsidiaries of Select Medical Corp. They are seeking reimbursement ...