Long-term care hospitals may see a bigger than expectedbump in their payment rate in 2009, according to the Centers for Medicare &Medicaid Services.  On Tuesday, CMSproposed increasing the payment rate by 2.6%, which would push total fundingfor LTACs past $4.4 billion. It also would be a full percentage point higherthan what was recommended by the Medicare Payment Advisory Commission (MedPAC).

The new payment rate would take effect on July 1 of thisyear, though officials are also seeking to change the annual update year’sstart to Oct. 1. Such a change would make the next rate change valid from July1, 2008, to Sept. 30, 2009. 

About 400 long-term care hospitals nationwide, includingthose operated by prominent long-term care operators, would receive theincreased funding.