Mobile menu

Outpatient Hospitals Exempt from 2018 Therapy Cap

by • January 4, 2018 • 15 Comments

Since Congress did not repeal the annual therapy cap or extend the therapy cap exception process into 2018, most outpatient therapy settings will now be dealing with a hard therapy cap of $2010.00 for physical therapy and speech-language pathology services combined and a separate $2010.00 for occupational therapy services. Why did I say most outpatient therapy settings will be dealing with a hard therapy cap in calendar year 2018? That’s because outpatient hospitals, but not critical access hospitals (CAHs), will be exempt from the 2018 annual therapy cap. Continue reading below to see why outpatient hospitals, but not CAHs, are exempt from the 2018 therapy cap with the references to support the information provided.

This content is for Gold Members only. Please log in above or Register

15 thoughts on “Outpatient Hospitals Exempt from 2018 Therapy Cap”

  1. Tiffany Drake says:

    on it shows that the exception process still applies for 2018 and just says outpatient, and doesn’t differentiate as outpatient hospital. Are you sure that there is no exception process for a private office?

    1. Rick Gawenda says:

      As of today, there is no exception process for any settings except outpatient hospitals.

      1. Tom Bednar says:

        I understand outpatient Hospital therapy does not have a cap; however, do their allowables count towards private practice outpatient caps once the patient gets move to a clinic?

        1. Rick Gawenda says:


          1. Rochelle Hawkins says:

            Can you please differentiate for me the definition of Outpatient Hospital and Outpatient Hospital departments. I work for a large hospital, that would have Medicare Part B therapy with Observation beds, ED services, and outpatient surgery centers. We also have 18 Outpatient therapy Clinics that bill with Hospital billing. Are you saying that none of these services (within the hospital and the outpatient clinics) will have a therapy cap? or Just the services within the hospital? Also above it states that there is no exception process for any site except outpatient hospitals. That sounds like to me that Outpatient hospital still has a cap, but is allowable to use the KX modifier beyond that as the exception. That sounds very different to me than “Outpatient Hospitals Exempt from 2018 Therapy Cap”… any guidance is appreciated.

          2. Rick Gawenda says:

            As it stands today, January 5, 2018, outpatient hospitals are exempt from the 2018 therapy cap. This means that therapy services provided under the hospital tax identification number would be exempt from the therapy cap. No KX modifier would be required.

  2. Tiffany Drake says:

    from what I can tell they have until 1/19/18 to pass therapy cap legislation to permanently extend the cap and exception process so I guess we just have to wait….

    1. Rick Gawenda says:

      Technically, Congress has no timeframe to either repeal the therapy cap or extend the therapy cap exception process. What they have to do by January 19, 2018 is pass legislation to fund the government to avoid a government shut down.

  3. Pam Kennedy says:

    Hi Rick, We are an outpatient department of a critical access hospital. Does the therapy cap apply to CAH? Thanks.

    1. Rick Gawenda says:

      The answer is in the last paragraph of this articile:

      I also just published 10 FAQs on the 2018 therapy cap. Read questions 8 and 9 in this article:

  4. Jaya Gurnani says:

    I have a question re: functional reporting. I am an outpatient rehab facility. If a patient has had 9 visits in 2017 and the 10th visit falls on jan.2nd, 2018, do i use the G-codes at the 10th visit or start over as Jan 2nd being the 1st visit?
    Would appreciate your response.

  5. david fontana says:

    Any news on congress acting on repeal of therapy caps?

    1. Rick Gawenda says:

      I just published an updated article this morning. You can read it at

  6. Jim Abromaitis, RPT says:

    Rick, As always,Thank You!

    You are a leader in our field!!

Leave a Reply

Your email address will not be published. Required fields are marked *