
| 1999 | The Centers for Medicare and Medicaid Services (CMS) initiated a reimbursement methodology related to certain Diagnostic Related Groups (DRGs) involving transfers to post-acute care facilities (e.g., SNF or rehab facility) or to home health care. Initially, 10 DRGs were involved. |
| October 2003 | 29 DRGs are subject to overpayments |
| October 2005 | 182 DRGs are subject to overpayments |
| October 2006 | 188 DRGs are subject to overpayments |
| October 2007 | 273 DRGs are subject to overpayments |
| In an effort to address these inpatient overpayment issues, “Transfer DRGs” (TDRGs) were established, with corresponding edits, checks and balances incorporated into the CMS payment systems. | |
| 2008 | OIG stated in their 2008 Work Plan that they would be reviewing patient discharges that should have been coded as transfers rather than discharges. As a result, compliance issues with Transfer DRG regulations are becoming even more prevalent and important for providers and the potential negative impact on a hospital’s reimbursement for Transfer DRGs continues to grow. |