Kathy Schaeffer is committed to helping clients deliver high-quality care while maintaining regulatory compliance in an evolving health care landscape. She advises hospitals, physician groups, health systems and other health care providers on a broad range of operational and regulatory matters. Kathy’s practice focuses on compliance with federal and state health care laws, including HIPAA, the Stark Law, the Anti-Kickback Statute and state licensing regulations.

With a strong foundation in health care law and a practical understanding of provider operations, Kathy supports clients in navigating day-to-day legal challenges such as medical staff governance, provider contracting, telehealth implementation and policy development. She also assists with internal compliance reviews and responses to regulatory inquiries.

Education

  • University of Denver Sturm College of Law (J.D., 2006)
    • Order of St. Ives
    • Denver University Law Review, Senior Editor
  • Cornell University (B.A., 2000)

    Bar Admission

    • Colorado
    • North Carolina
    Publications
    The Work Behind the Work Requirement: CMS Imposes Sweeping Medicaid Community Engagement Rule
    Key Takeaways On June 1, CMS released an interim final rule implementing the new Medicaid community engagement requirement (i.e., work requirement) as a condition of Medicaid eligibility for adults aged 19-64 with access to Medicaid coverage as a result of Medicaid expansion under the Affordable Care Act. States will need to build and pay for substantial operational infrastructure, eligibility system modifications, verification processes, outreach materials and reporting mechanisms before the January 1, 2027, implementation deadline. While the rule is directed at state Medicaid agencies, health care providers, managed care organizations, community-based organizations, and other entities serving Medicaid populations should prepare for increased rates of uncompensated care as impacted beneficiaries face additional eligibility and enrollment hurdles. Medicaid eligible adults who are medically frail face increased
    Read More
    CMS Proposes Caps on Medicaid State Directed Payments and Fee for Service Supplemental Payments, Further Cutting Federal Funding of Medicaid
    Key Takeaways: On May 22, 2026, CMS published a proposed rule (Proposed Rule), building on (and going beyond) the requirements of H.R. 1, outlining its plan to reduce both state directed payments (SDPs) and fee-for-service supplemental payments for Medicaid providers. SDPs – a common Medicaid financing tool that requires Medicaid managed care plans to make specific payments to certain provider types in order to advance Medicaid policy objectives (access to care, quality, parity, etc.) will largely be capped at a percentage of Medicare payments limiting a common rate structure tied to average commercial reimbursement.  This change impacts nearly all SDPs, not just the historical emphasis on services tied to academic medical centers. The Proposed Rule also targets fee-for-service supplemental payments, subjecting them to the
    Read More