EHR incentive payment miscalculation causes CMS to underpay some eligible hospitals

The Centers for Medicare & Medicaid Services (CMS) has underpaid some eligible hospitals their Medicare EHR incentive payments due to use of an incorrect transition factor, according to a notice from King & Spalding, an international law firm.

“CMS personnel have informed us that they are aware of this problem and that the agency intends to implement a system edit that will pay the remaining balance using the correct transition factor no later than the end of October 2014,” according to a notice from Christopher Kenny, an associate at the firm.

CMS pays out incentive payments utilizing a formula that includes a transition factor that reduces the total payment with each year an eligible provider participates in the program. The law firm urges eligible providers that have successfully attested to Meaningful Use to verify that their payments were made using the correct transition factor.

“Those providers paid using an incorrect transition factor should monitor their pay-to account and verify that CMS has paid the remaining balance by the end of October,” wrote Kenny.