Medicare Volume Decrease Adjustments
Volume decrease adjustments (VDA) are often an overlooked benefit for Medicare-designated Sole Community Hospitals (SCH) and Medicare-Dependent Hospitals (MDH). CMS allows SCHs and MDHs to file a VDA if the hospital experiences a decrease in total discharges of 5 percent or greater compared to the previous year. To qualify, the reason(s) for the decrease must be outside the control of the hospital. The benefit for hospitals can be substantial.
Due to the ongoing COVID-19 public health emergency, a greater number of hospitals may qualify for a VDA. Previously, hospitals had to wait until their cost report was issued a Notice of Program Reimbursement to file a VDA. Regulations have recently been clarified to allow hospitals to receive an interim VDA, resulting in timelier payments.
For more information on this exciting opportunity, including your potential benefit, reach out to your BKD Trusted Advisor™ or use the Contact Us form below.