MDHHS to Offer Initial Settlements for FY 2022 Cost Reports (SNF)

As we have reported, the Michigan Department of Health and Human Services (MDHHS) agreed to an HCAM proposal to distribute initial settlements for providers’ fiscal year 2022 cost reports. Initial settlements will direct the funding that is due to providers much sooner than funds would be available through the normal cost report audit and settlement process.

As a reminder, providers must:

• Formally request an initial settlement on company letterhead.
• Any cost report filed between April 16 and May 31 will be eligible for the normal initial settlement process.

Details of the initial settlement process are as follows:

• For any cost reports filed AFTER April 15, 2023, MDHHS will use the normal initial settlement process. This means the department will use the accepted filed cost reports and newly established VCL to compute the initial settlement — which will be completed by October.
• Providers that receive initial settlements will still go through the normal cost report audit and settlement process — initial settlements will include 80% of what the provider is ultimately owed.

Please note the following:

• Providers with multiple facilities who wish to request an initial settlement must submit settlement requests for all buildings. Is it not possible to file initial settlement requests for some facilities and not others.
• Initial settlements for multi facility providers will be dealt with on a building-by-building basis.
• MDHHS will pay initial settlements at 80% of what the provider is ultimately owed. Facilities that owe MDHHS must pay their debt in full.
• Quality Assurance Supplement (QAS) reconciliations will be processed after cost reports are filed and initial modified settlements are complete. MDHHS expects this to happen in mid-summer.