CMS Announces Extension to Pathology ‘Grandfather’ Clause

Hospital inpatients and outpatient pathology services is extended for another year through the end of 2011. This extension will allow qualifying independent labs to continue to bill Medicare for the technical component of pathology services performed for hospital inpatients and outpatients. CMS has long contended that such payment should be included as part of DRG or APC payments made to hospitals for such services. Please remember that the grandfather clause only applies to hospital/lab arrangements in effect as of July 22, 1999.