Medicare-Related Capital Costs Reported by New Hospitals
Hospitals are paid through Medicare Part A for Medicare-related capital costs (such as depreciation, interest, rent, and property-related insurance and tax costs). Most hospitals receive payment for capital costs through the Medicare Inpatient Prospective Payment System (IPPS) whereby a portion of their payment for each patient discharge is intended to cover capital costs. New hospitals can be exempted from the IPPS and be paid on a cost basis for their first 2 years of operation. We will determine whether new hospitals claimed Medicare-related capital costs in accordance with Federal regulations.
|Announced or Revised||Agency||Title||Component||Report Number(s)||Expected Issue Date (FY)|
|May 2021||Centers for Medicare and Medicaid Services||Medicare-Related Capital Costs Reported by New Hospitals||Office of Audit Services||W-00-21-35870||2022|