19 Mar 2011
Community MR Programs still have not received the Period 1 Revenue Reconciliation letters asof this date. We have heard through the grapevine that they will be issued within 30 days. Perhaps now that the Governor's proposed budget has been released, some final decisions can be made. It is critical to review these letters carefully when they arrive. In particular, you should be careful about the starting target, the calculation for any changes to the target, the impact of the revenue adjustment factor (RevAF), if any, and whether or not you need to file an appeal.
There are supposed to be three Periods in FY 2010-11. It is our understanding that the RevAF may change each time. DPW originally said that the Period 1 letter would be issued January 19, Period 2 letter would be May 22, and the Period 3 letter would be September 14, 2011. The first date of course has passed, as well as the postponement dates, and AZTAC does not expect that the Period 2 and Period 3 dates will be realized.
As of this date, Revenue Reconciliation is not scheduled for FY 2011-12 and beyond. There has been considerable discussion, however, about an extension for one or two years. In order to do so, the Department needs to submit a request to CMS by March 31st. On February 24th, CMS stated that they did not yet have a request from Pennsylvania's DPW, and if they received such a request, they would consider it carefully. In particular, they would want to know why it was necessary.
Finally, as we know from the last two years, the revenue reconciliation "process" continues to change and we need to pay close attention each time something is issued by the Department. It is also a good idea to keep checking www.odpconsulting.net for information.