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Healthcare Perspectives


How to monitor impact of Medicare sequester payment cuts

Apr 26, 2022
By: Brian Lebanion

Have you been able to minimize the impact on your healthcare organization in the wake of the reinstatement of the Medicare sequester payment cut on April 1? And are you ready for the full 2% cut coming in July?

There are several key factors healthcare providers can review several key factors to minimize the impact on cash flow and financial standing.

Steps for handling sequestration

  • Review EMR systems to make sure you capture the change in revenue anticipated.
  • Ensure accounts receivable processes are adjusted to track proper claims and payments.
  • Double check payments from the intermediary to make sure that payments are correct and monitor the FI’s systems for issues with claims processing.
  • Work with the finance department to forecast the impact of the payment cuts and adjust budget expectations accordingly.
  • Monitor further communications from CMS to track any changes or updates in the ongoing advocacy efforts to extend sequestration.

How Wipfli Can Help

Wipfli’s team is dedicated to helping home health agencies navigate changes in the industry introduced by updated reimbursement regulations. Our experienced billing and consulting team can assist you to reduce the likelihood accounts receivable issues and reduced cash flow by assuring that your revenue cycle management process is ready for this change. Learn more on our home health services web page.


Brian Lebanion, MBA, CPC, RNC
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