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Article: Courts uphold HCFA geographic reclassification standards. (Health Care Financing Administration) (Medicare/Medicaid)
- Article from:
- Healthcare Financial Management
- Article date:
- April 1, 1993
- Author:
CopyrightCOPYRIGHT 1993 Healthcare Financial Management Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In the past two years, four courts have addressed various challenges to the Health Care Financing Administration's (HCFA's) Medicare geographic reclassification standards. All four courts have ruled in HCFA's favor.
Geographic factors
Geographic location has been a significant determinant of a hospital's payment under the Medicare prospective payment system (PPS). Urban hospitals have always received a higher standardized payment than rural hospitals. For the past several years, hospitals in large urban areas (defined as metropolitan areas with a population of at least 1 million) have received higher standardized payments than other urban hospitals.
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