Despite ongoing efforts to reduce the federal government’s healthcare costs, Medicare will increase its reimbursements to hospitals by an expected $2.4 billion, under FY2018’s final Inpatient Prospective Payment System (IPPS) rule, which was issued in August.
Under the ruling, savings that have been achieved through value-based care delivery and performance improvements, through the Affordable Care Act and other cost-reduction measures will be more than offset by spending allotments within the 21st Century Cures Act and by Medicare’s “market basket update,” which attempts to track and offset healthcare cost inflation.
Still, the American Hospital Association said, the pay increase isn’t enough.
The organization was “disappointed that CMS has decided not to restore last year’s excess cut to reimbursement rates for hospital services,” stated its executive vice president, Tom Nickels.
“While a reduction to the hospital update factor was mandated by law in 2012, CMS ignored Congress’ intent by imposing a cut that was nearly two times what Congress specified,” he argued.
Get the full story here, from HealthLeaders Christopher Cheney.