MASSDEVICE ON CALL — Medicare regulators are hoping to clear a backlog of reimbursement appeals by offering hospitals 68¢ on the dollar to drop their efforts.

If accepted by hospitals, the deal could help the agency work its way out of growing controversy and litigation about the delays that hospitals have faced in appealing rejected claims for inpatient reimbursement, Law360.com reported.

There were some 500,000 appeals awaiting processing as of February this year as the sheer quantity of appeals has skyrocketed in recent years. The American Hospital Assn. is among those suing to get appeals-processing back on track, and representatives for the organization seemed less than enthralled by the settlement offer.

"At first blush the proposal seems narrow. It also fails to address the underlying cause of the problem — overzealous RAC reviewers," The group told Law360. "But, given the tremendous financial hardship the ALJ delay is causing many hospitals, it could provide some temporary relief."

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