Clinic reimbursements expected from Medicare

This article submitted by Peter Jacobson on 11/25/97.

Reimbursement from Medicare for the depreciation of the medical clinic, since its move to the hospital campus, was discussed at the hospital board meeting last week.

Medicare pays for its portion of depreciation [based on percentage of usage] as well as the charges for patient care. Medicare is current with PAHCS in its payments for patient care charges

The clinic opened for business in August 1995 in its present location. Since that time, PAHCS has not received depreciation reimbursement. The formula for reimbursement for the old clinic is not used because the allocation of costs change with a new facility.

Willie LaCroix, PAHCS administrator, estimated that for the two years since the opening of the new clinic, the reimbursement will amount to about $100,000 per year of operation.

"The $200,000 expected from medicare would certainly have helped with cash flow," LaCroix said. PAHCS has recently been through three summer months of low census in the hospital, and without the medicare reim-bursement, has needed to cash some CDs to accommodate cash flow.

PAHCS administration is concerned that their auditors have not been able to inform PAHCS of the amount that can be expected from medicare. A medicare audit, originally set for mid 1998, has recently been moved up to January 1998. This audit should establish the new formula for reimbursement, and then the payment should be forthcoming, according to LaCroix.

In other business:
* A strategic plan for PAHCS should be ready for presentation to the board at the meeting in December. A committee has been working on the plan for several months. The audit for fiscal year ending Sept. 30, 1997, will also be presented in December.

* The board approved the appointment of Richard Jolkovsky, M.D. [cardiology] to the medical staff following the completion of the provisional period. The board also approved the reappointments of all the current medical staff.

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