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
schedule.
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