HCS, LLC Geographic Reclassification

Medicare allows PPS hospitals to apply for a geographic reclassification to an Metropolitan Statistical Area (MSA) meeting certain criteria. Healthcare Consulting Services, LLC (HCS), assists hospitals in filing their applications for geographic reclassification for purposes of obtaining the appropriate inpatient reimbursement.

By reclassifying to another MSA, the Hospital can improve reimbursement in the following areas:

Increase the standard operating DRG payment by increasing the standardized amount, the wage index or both

Become eligible for disproportionate share payments by reclassifying from a rural area to an urban area

Increase the standard capital DRG payment by increasing the standardized amount, the wage index or both

Hospitals requesting reclassification must apply on an annual basis even if approval was granted in a previous year. Failure to properly complete the required application and provide appropriate documentation will result in a dismissal of the hospital’s request.

At HCS, we thoroughly understand the application process and are prepared to complete this process for you. Our geographic reclassification program allows us to review your Hospital’s opportunities and to determine if reclassifying would benefit your Hospital.

If you are interested in applying for a geographic reclassification for your Hospital or are interested in learning more about it, please call Kim Koch at (317) 633-4708, Ext. 357 or e-mail at kkoch@hcs-healthcare.com.

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