Medicare Paid New Hospitals Three Times More for Their Capital Costs Than They Would Have Been Paid Under the Inpatient Prospective Payment System

Submitting OIG:

Date Issued:

Friday, August 13, 2021

Agency Reviewed / Investigated:

Submitting OIG-Specific Report Number:

A-07-19-02818

Component, if applicable:

Centers for Medicare & Medicaid Services

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Related Open Recommendations

Recommendation Number	Recommendation Status	Significant Recommendation	Additional Details
270996	Open	No
We recommend that the Centers for Medicare & Medicaid Services review the findings in this report and, if it determines that a separate payment methodology for capital costs at new hospitals is no longer warranted, change its regulations to require new hospitals to have their Medicare capital costs paid through the IPPS with an option for payment adjustments or supplemental payments if necessary