Medicare Long-Term Care Hospital Improvement Act of 2007 - Amends title XVIII (Medicare) of the Social Security Act to prescribe requirements for a long-term care hospital (LTCH) and patient criteria for prospective payment to an LTCH.
Directs the Secretary of Health and Human Services to: (1) determine a list of medical conditions associated with a high severity of illness of patients who are appropriate for treatment in long-term care hospitals, as indicated by the presence of clinical comorbidities in accordance with a methodology specified by the Secretary; and (2) study and report to Congress on appropriate quality measures for Medicare beneficiaries receiving care in LTCHs.
Directs the Secretary to choose three quality measures from the study for LTCHs to report.
Amends the Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 to require annual updates of LTCH base rates and wage indices and the reweighting of LTCH-DRGs.
Prohibits the Secretary from extending application of the 25% (or applicable percentage) patient threshold payment adjustment to freestanding LTCHs.
Directs the Secretary to permit up to 75% of the discharged Medicare inpatient population: (1) of an applicable hospital to be admitted from a co-located urban single or co-located MSA dominant hospital without adjustment to the hospital's LTCH prospective payment system payment in a specified manner; and (2) of an applicable hospital located in a rural area to be admitted from a co-located hospital without such an adjustment, either.