Do SCH and MDH hospitals receive Low Volume Adjustment?

Yes. In addition to qualifications and adjustment amount noted in 42 CFR Sec. 412.101, SCH and MDH low-volume payment adjustment for eligible hospitals is based on either the federal rate or the hospital-specific payment (HSP) rate, whichever results in a greater operating IPPS payment.

For example, effective for discharges in FFY23 forward the adjustment factor is 25 percent. For SCH/MDH providers the add-on will apply to the greater of the federal rate or HSP on WS E, Pt A Line 47, and 48; respectively. Note that W/S E, Pt A Exhibit 4 must be completed in order for the adjustment to flow to WS E, Pt A.


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