"Nothing in the Medicare rules or regulations prohibits such discounts."
Under Medicare rules, the advertising could not begin until this past weekend.
Vencor, of course, is not the only company that will be affected by the new Medicare rules.
The intermediary decides which medical conditions are covered according to its interpretation of Medicare rules.
Medicare rules require such reviews, the accounting office said.
The Medicare rule said a lower group payment rate should have been used.
Under Medicare rules, hospitals receive a set payment for a particular disease.
But Medicare rules, which tend to set standards for all patients, require physician supervision in hospitals.
Medicare rules forbid overt discrimination against people in poor health.
It is an exception to the general Medicare rule restricting drug coverage to patients in a hospital or other institution.