Transmittal 16 Extension for IRF providers and Small Rural Hospitals (100 or fewer beds) that are NOT Sole Community

Home Provider Part A Medicare Areas Audit and Reimbursement

CMS recently issued JSM 06635, which gives certain hospital providers an extension for filing their cost reports due to the delay in issuance of Transmittal 16. IRF providers and Hospitals with IRF subunits with cost reporting periods ending between 12/31/2005 and 5/31/2006, have an extension to file until November 30, 2006. Small Rural Hospitals with 100 beds or less that are not currently set up as Sole Community with cost report periods ending between 1/1/06 and 5/31/2006 also have an extension to file until November 30, 2006. Please note that based on this JSM all affected providers MUST wait to file on Transmittal 16. The previous extension gave providers the option to file on T15 and have the cost report finalized on T16, however CMS has removed this option for this additional extension. As a result, any cost report received by the Fiscal Intermediary on or after 8/18/2006 (the effective date of the JSM) MUST be filed on T16 or it will be rejected. Please contact the Audit Supervisor assigned to your facility if you have any additional questions.

IRF Hospitals and Hospital Based IRF Subproviders
The update to the low-income percentage (LIP) adjustment and the new teaching adjustment status for discharges occurring on or after October 1, 2005, necessitate significant changes to the IRF hospital cost report.  The Centers for Medicare & Medicaid Services (CMS) is extending the cost report submission due date to
November 30, 2006, for those cost reports for IRF hospitals and hospitals containing IRF subproviders with cost reporting periods that ended between December 31, 2005, and May 31, 2006. 

The CMS issued Change Request (CR) 4037 on September 16, 2005, to notify contractors of the LIP and teaching adjustment changes impacting IRF hospitals.  The first cost reports significantly affected by these changes are those for fiscal year ending December 31, 2005, which were due to be filed by May 31, 2006.

Joint Signature Memorandum (JSM)-06456 dated May 22, 2006, extended the cost report submission due date to August 31, 2006, for IRF hospitals and hospitals with IRF subproviders for cost reporting periods that ended between December 31, 2005, and February 28, 2006.  The CMS is further extending the due date to November 30, 2006, for cost reporting periods that ended between December 31, 2005, and May 31, 2006, due to the delay in incorporating these complex cost report changes and the time required to test and approve electronic cost report vendor systems.

Small Rural Hospitals that are Not Sole Community Hospitals
Section 5105 of The Deficit Reduction Act (DRA) of 2005 reinstituted hold harmless payments through December 31, 2008, for rural hospitals having 100 or fewer beds that are not sole community hospitals.  These small rural hospitals will continue to receive Transitional Outpatient Payments (TOPs) through December 31, 2008.  Small rural hospitals that are not sole community hospitals with cost reporting periods ending on or after January 1, 2006, through May 31, 2006, have an extension until November 30, 2006, to file their cost reports.

Page Last Updated: Wednesday, 31-Dec-2008 10:49:04 CST