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As part of the FY 2022 Hospice Payment Rate Update CMS is proposing to modify the labor component for each of the daily reimbursement rates.  The labor component is the basis for adjusting payment rates based on the location where the hospice services are furnished.

The Proposed Rule, dated April 14, 2021, provides a summary of the methodology being used to calculate the proposed labor component.  The following is a comparison of the current labor portion of hospice reimbursement rates to the proposed labor component:

                      Proposed Labor      Current Labor

                                 Shares                    Shares

Continuous Home Care                     74.6%                     68.71%
Routine Home Care                            64.7%                     68.71%
Inpatient Respite Care                       60.1%                     54.13%
General Inpatient Care                      62.8%                     64.01%

In addition to the daily hospice reimbursement rates, the labor component would impact the aggregate payment limitation (“CAP”) if, based on recent recommendations by MedPAC, the hospice CAP was to be modified based on geographical location.

The Proposed Rule also provides the proposed national payment rates (subject to geographical calculation) which would be effective October 1, 2021.  These are as follows:

Routine home care (days 1-60)        $   203.81
Routine home care (days 61+)         $   161.02
Continuous home care                      $     61.07/hour
Inpatient respite care                         $    474.43
General inpatient care                       $ 1,070.35

The proposed rates are inclusive of a proposed increase in reimbursement rates of 2.3%, but also include a wage index standardization factor as well as a labor share standardization factor.

The hospice CAP is proposed to be increased to $31,389.66 from the current $30,683.93.

The entire Proposed Rule is available here and comments must be received by CMS on or before June 7, 2021.  The Proposed Rule, subject to modifications, will be finalized prior to our upcoming Hospice Financial Management Academy and reimbursement modifications will be covered at the program.  A copy of our comments to the Proposed Rule can be obtained by emailing us at contact@healthgroup.com.


The Health Group, LLC is now accepted registrations for the 2021 Financial Management Academy, scheduled for September 13-14, 2021 at the Paris Las Vegas Hotel & Casino.  Information on the program will be located on our website within the next couple of days; however, an advance copy can be provided to you by emailing us at contact@healthgroup.com.  We are very excited to provide live programming again!  The networking opportunities coupled with the ability to react to the needs of attendees make live programming more beneficial to other educational formats.

Consistent with other programs we offer, attendance is limited to better ensure the quality of the program and participation opportunities for all attendees.  We hope to see you or someone from your Organization in Las Vegas.  Early registration discounts are available through July 15, 2021 and special room rates have been secured with the hotel.