Considering PIP Reimbursement for Hospices

The Health Group 

Most healthcare providers are not eligible for Periodic Interim Payment (“PIP”) reimbursement; however, hospices are eligible.  The beginning of a hospice’s fiscal year is the perfect time to request PIP reimbursement in lieu of being reimbursed as claims are processed.  Many hospices are unaware of the availability of PIP reimbursement which provides fixed bi-weekly payments to the hospice throughout the year, with periodic adjustment to the PIP payment rates based on actual billing experience and projected levels of Medicare beneficiary activity.

Requesting PIP reimbursement is easy and, once approved, management and periodic reporting to the Medicare Administrative Contractor is relatively simple.  PIP can accelerate cash flow to the hospice if properly monitored, provides reimbursement stability (same amount every two weeks, adjusted three (3) times per-year), and generally requires minimal administrative resources.

Assuming level utilization throughout the year, a hospice with $2,000,000 in total Medicare reimbursement would experience approximately $49,000 more in their bank account daily than the hospice would experience being reimbursed as claims are processed (assuming all claims are reimbursed within thirty days of the end of the prior month).  Attendees at our upcoming conference will be provided with detailed information to take back to their hospices to appropriately assess the potential cash-flow benefits of PIP.