Medicare Bad Debts — Providers Win One and Lose One in the Courts


Two courts, the United States District Court and the Court of Appeals for the

District of Columbia, each recently issued a decision addressing a provider’s

right to Medicare bad debt reimbursement. The district court upheld a

provider’s right to Medicare reimbursement for bad debts even though the

provider did not uniformly apply an asset test to determine its patients’

indigence. The court of appeals disallowed bad debt reimbursement to skilled

nursing home providers’ related to therapy services paid pursuant to a fee


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