Kindred says Medicare changes will cut revenue
Health care services company Kindred Healthcare Inc. said Wednesday changes in Medicare reimbursements will likely reduce the company's Medicare revenue from Part B therapy services by about $11 million annually.
The company had overall revenue of $4.27 billion in 2009, which means the expected reduction in therapy services revenue from the Medicare program would amount to a fraction of a percentage point of the anticipated overall total if applied retroactively.
The proposed rule provides for a rate reduction for reimbursement of therapy expenses for secondary procedures when multiple therapy services are provided on the same day. The Centers for Medicare and Medicaid Services projects that the proposed rule will result in a 10 percent rate reduction.
The proposed rule is subject to a 60-day public comment period and is scheduled to become effective Jan. 1.