Capital PPS 10-year transition up and running

Hospital financial officers must prepare themselves for the long stretch, as the 10-year transition to Medicare's new capital prospective payment system (PPS) gets underway. Documentation related to capital assets and their financing must be assembled and preserved throughout the transition period; audit procedures must be understood; crucial deadlines must be met; and calculations by Medicare fiscal intermediaries (FIs) must be verified by reference to a hospital's records. Most important, lines of communication with FIs must be established and maintained because rates set this year will determine a substantial portion of Medicare payment for the next decade.