CMS to Rescind Final "Clarification" of Medicaid Outpatient Hospital Services Definition


CMS's final "clarification" of the definition of Medicaid

Outpatient Hospital Services (OHS) published November 7, 2008 (effective December 8, 2008) substantially changed

the definition of Medicaid OHS and faced substantial opposition from, among others, the American Hospital Association (AHA). Congress, in response to the

strong opposition to the "clarification," blocked CMS from implementing that

final rule. Section 5003(c) of the American Recovery and Reinvestment Act

(ARRA) precluded CMS from taking any action to implement the final clarification. Thomas W. Coons and Joshua J. Freemire of Ober|Kaler discuss.

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