MedicaidReimbursementMedium impact
Use of Patient Credit for Hospice Residents
Illinois Medicaid - HFS·IL · Palliative Care·Provider Notice
Effective date
Aug 1, 2006
We identified it
Jun 21, 2026
Summary
This policy clarifies how patient credit is applied when long-term care residents transition to hospice care mid-month. LTC facilities must first apply patient credit to their portion of care, with any remaining credit reducing the hospice provider's LTC room and board payment (95% of LTC Medicaid rate).
Action Required
Immediately: Billing teams at LTC facilities and hospice providers must update workflows for mid-month hospice transitions. LTC facilities should apply patient credit to their charges first, retaining the entire credit amount. Hospice providers should expect reduced payments for LTC room and board when excess patient credit exists. Contact Bureau of Comprehensive Health Services at 877-782-5565 (hospice) or Bureau of Long Term Care at 217-782-5545 (LTC) with questions.