Rule change will lead to thousands and thousands extra in federal {dollars} for New Jersey hospitals
A current federal authorities rule change will lead to a further $150 million for New Jersey hospitals.
As a part of the $1.9 trillion American Rescue Plan (ARP), a Facilities for Medicare and Medicaid Providers (CMS) rule change makes the so-called “imputed rural ground” everlasting. CMS established the “imputed rural ground,” which adjusts Medicare funds to hospitals based mostly on a wage index, however the coverage resulted in 2018.
In accordance with the New Jersey Hospitals Affiliation (NJHA), 37 hospitals will obtain a further $146.5 million in fiscal 2022 Medicare inpatient and outpatient Potential Fee System (PPS) funds.
“The elimination of the imputed ground in 2019 value New Jersey hospitals thousands and thousands of {dollars} in Medicare funds, putting them at a critical drawback in opposition to different states in attracting healthcare employees,” Cathleen Bennett, president & CEO of NJHA, stated in a press release . “The reinstatement of this provision ensures that our state’s hospitals are in a position to compete on a stage taking part in area to maintain these crucial caregivers proper right here in New Jersey.”
The “imputed rural ground” is related to New Jersey as it’s one among three states CMS has designated as an “all-urban” state based mostly on its geographic measurement and statewide inhabitants. CMS has additionally designated Delaware and Rhode Island as “all-urban” states.
In a press release, U.S. Sen. Bob Menendez, D-N.J., stated, “the injection of thousands and thousands of {dollars} in annual federal funding into our hospitals will assist them entice and retain the very best expertise as nicely proceed to supply high-quality take care of New Jerseyans.”
Moreover, 9 hospitals in Middlesex, Monmouth and Ocean counties will see a further $3.5 million in fiscal 2022 after CMS utilized an “prolonged transition” to the fiscal 2022 wage index for hospitals that acquired a 5% transition in fiscal 2021.
