New Metropolitan Areas Shuffle The Deck

On May 11,2004, the U.S. Centers for Medicare and Medicaid Services (CMS) announced plans to implement new metropolitan area designations beginning with fiscal year 2005. If finalized, these changes will profoundly affect many aspects of the Medicare program, including provider payments, certain special designations, eligibility for federal physician self-referral exceptions and Anti-Kickback law safe harbors and grant programs. Moreover, these changes would have broad implications for a variety of providers, including hospitals, skilled nursing facilities, home health agencies, ambulatory surgery centers and many others. All providers are advised to carefully examine CMS’s proposal and prepare for the implications.