What is Volume Decrease Adjustment?
Medicare allows for a lump sum payment known as a Volume Decrease Adjustment (VDA) to Sole Community Hospitals (SCH) and Medicare Dependent Hospitals (MDH) that experience more than a 5% decrease in discharges as long as the circumstances are outside the hospital’s control. The COVID-19 global pandemic has adversely impacted almost every hospital at least this much.
HRS has the Experience You Need
Healthcare Reimbursement Solutions has decades of expertise documenting catastrophic events, whether they be a flood, fire, extreme weather, or even labor disputes, so that hospitals receive the correct VDA payment from Medicare. Having our experienced team behind you is the difference between having an adjustment request denied or accepted in full. Given that the COVID-19 pandemic has substantially affected hospitals like yours, we are confident that the 5% threshold mentioned above will be met.
How Can We Help?
- We are ready to help prepare your Volume Decrease Adjustment request in parallel with your Medicare cost report. This unique approach ensures that mitigation efforts are cataloged while critical staff remain available to our trained interviewers, thereby providing the most accurate reimbursement for your hospital.
- Partnering with a firm that can provide the specific hands-on attention to detail to collect all the facts ensures the best possible outcome; while many are willing to help, HRS has the experienced staff necessary to assist with this complicated reimbursement mechanism.
Give us a call today to discuss how HRS can help your hospital receive their VDA reimbursement from Medicare.
Recent Changes to VDA Calculation Benefit Hospitals
The Federal Fiscal Year 2018 Hospital Inpatient Prospective Payment System (IPPS) final rule implemented the following beneficial changes to the calculation of the Volume Decrease Adjustment for Sole Community and Medicare-Dependent Hospitals for Medicare Cost Report periods beginning 10/1/2017 and after.
These changes are effective for cost reporting periods beginning on or after October 1, 2017. The Centers for Medicare and Medicaid Services estimates the above changes would increase aggregate Volume Decrease Adjustment payments by approximately $15 million for cost reporting periods beginning in FY 2018.