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Long-Term Hospitals Lose Bid for Redo on Medicare Bad Debt Pay

Oct. 18, 2021, 1:09 PM

A group of long-term hospitals lost its bid to force a U.S. health-care program to pay the facilities more than $3 million to make up for bad debts left after they treated poor, elderly patients.

New LifeCare hospitals in North Carolina, Pennsylvania, Texas, and Louisiana sued the U.S. Health and Human Services Department to recover bad debt reimbursements after their claims were denied by private Medicare contractors in April 2008 for noncompliance with the Centers for Medicare and Medicaid Services’ must-bill policy.

CMS’s sudden decision to start enforcing the policy in 2008—four years after its adoption—violated the Medicare Act and ...

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