Medical Directors’ Compensation ≠ RCE Limits

caduceusMosby’s Medical Dictionary, 8th edition, defines a medical director as “a physician who is usually employed by a hospital to serve in a medical and administrative capacity as head of the organized medical staff. He or she also may serve as liaison for the medical staff with the hospital’s administration and governing board.”

This definition may seem a little old-fashioned in the current world of medicine. Today’s medical directors are likely to add service line management and financial goals to their responsibilities. Some organizations have multiple medical directors who manage a particular department or group of departments, or who have joint responsibility for the entire organization.

Given these differing roles and responsibilities, the compensation paid for directorships can vary widely. For the Medicare cost report, Reasonable Compensation Equivalent (RCE) limits are not applicable to a medical director, chief of medical staff, or to the compensation of a physician employed in a capacity not requiring the services of a physician and can be excluded from disclosure on Worksheet A-8-2.

Tip #17:

Exclude medical directors from A-8-2 as they are not subject to RCE limits (Pub. 15-2, §Section 4018).

Further guidance can be found on the Centers for Medicare and Medicaid Services (CMS) website:

Provider Reimbursement Manual 15-2, Chapter 40

Questions? Please contact Marie White at 612.253.6546 or mewhite@eidebailly.com.

 

What are SNF Swing Bed Days?

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LOL. BRB. TTYL.

To some people, these abbreviations make no sense, but to most who send text messages they are easy to understand (“laughing out loud,” “be right back,” and “talk to you later”).

ALOS. SNF. MRI.

To someone who works in health care, these abbreviations are the ones that make sense, but unfortunately knowing what the abbreviation stands for doesn’t always help you understand what it truly means (“average length of stay,” “skilled nursing facility,” and “Magnetic resonance imaging”).

For the Medicare cost report, skilled nursing facility (SNF)-type services are routine services furnished by a swing-bed hospital that would constitute extended care services if furnished by an SNF. Effective October 1, 1990, only Medicare covered services are included in the definition of SNF-type services.

Services in swing bed areas provided to Medicaid and other non-Medicare payers are considered “nursing facility” (NF) days and are reported and paid differently than SNF days

Tip #16:

“Skilled” Swing Bed days are the only days Medicare considers “SNF” for the Cost Report (Pub. 15-2, §Section 4005.1).\

Further guidance can be found on the Centers for Medicare and Medicaid Services (CMS) website:

Provider Reimbursement Manual 15-2, Chapter 40

Questions? Please contact Marie White at 612.253.6546 or mewhite@eidebailly.com.