Medicare reimbursements to increase at 4 R.I. hospitals in ’13

PROVIDENCE – Four Rhode Island hospitals – Newport, Kent, South County and Westerly hospitals – will receive an increase totaling $7.1 million increase in Medicare payments for fiscal year 2013, thanks to a change in the hospital wage index regulations issued Aug. 1 by the Centers for Medicare and Medicaid Services.

The regulation change in the Hospital Inpatient and Outpatient Prospective Payment System was sought by Rhode Island’s congressional delegation.

Newport Hospital is projected to receive $1.32 million, Kent Hospital is projected to receive $3.26 million, South County Hospital is projected to receive $1.31 million and Westerly Hospital is projected to receive $1.19 million.

The increase in Medicare reimbursements will improve the bottom line for the four hospitals.

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For instance, in 2013, Westerly Hospital, which is currently in receivership and expected to be sold for $69 million to Lawrence & Memorial Hospital in New London, Conn., will receive $400,000 in reimbursements, instead of an anticipated decrease of $800,000.

“I thank the Centers for Medicare and Medicaid Services for recognizing the need and answering our delegation’s call to establish payment reimbursement parity for Rhode Island hospitals,” said Rep. David Cicilline in a statement.

“These important resources will help level the playing field for hospitals in Rhode Island, providing predictability so that all hospitals can best plan how to continue providing quality, safe, and affordable health care to Rhode Island patients,” added Cicilline.

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