The Centers for Medicare & Medicaid Services dropped a May proposal that would have restricted long-term acute-care hospitals from getting more than 25% of their admissions from host hospitals. The final PPS regulations will take effect Oct. 1.

The CMS instead will limit additional Medicare payments to long-term acute-care hospitals for patients who did not qualify as outlier cases at the host hospitals. The limits will be implemented over a four-year phase-in period.

The regulations will be published in the Federal Register Aug. 11, but can be read online at www.cms.hhs.gov/providers/hipps/frnotices.asp.