As a result of the Budget Control Act of 2011 , mandatory federal spending cuts, commonly known as “sequestration,” are required. This law is expected to generate spending cuts of $109 billion in the first year and $1.2 trillion through 2021. Sequestration was originally expected to begin January 2, 2013, but was postponed for two months through the American Taxpayer Relief Act of 2012 , passed on December 31, 2012.
On January 1, 2013, Congress passed the American Taxpayer Relief Act of 2012 , which the president has signed. The act delays sequestration for two months, but assumes the remaining sequestration will resume on March 1, 2013. This means that, for two months, health care providers have avoided the 2 percent cuts in Medicare payments scheduled to take place January 1.
The May 11, 2012, Federal Register includes the Centers for Medicare & Medicaid Services’ (CMS) proposed rule changes to the Long-Term Care Hospitals Prospective Payment System (LTCH PPS) for federal fiscal year 2013. Among the changes in the proposed rule: LTCH Rate Updates: The proposed LTCH-specific market is based solely on Medicare cost report data of LTCHs and excludes Inpatient Rehabilitation Facilities (IRFs) and Inpatient Psychiatric Facilities (IPFs) for the first time
Recently issued IRS Notice 2011-52 addresses community health needs assessment (CHNA) requirements added to the Internal Revenue Code by the Patient Protection and Affordable Care Act (ACA). While CHNA requirements are not effective until tax years beginning after March 23, 2012, the IRS is issuing guidance for hospital organizations wishing to start the process now. Guidelines in the notice refer to any CHNA made widely available to the public and any implementation strategy adopted on or before a date six months after the IRS issues further guidance