Healthcare Business News

CMS maintains pay boosts for psychiatric, skilled nursing, rehab providers

By Bob Herman
Posted: July 31, 2014 - 10:45 pm ET

Final Medicare payment increases to inpatient psychiatric hospitals, skilled nursing facilities and inpatient rehabilitation facilities in fiscal 2015 are nearly identical to what the CMS proposed this past May, according to rules released Thursday.

Inpatient psychiatric facilities will receive a 2.5% boost in Medicare payments in the next federal fiscal year, starting Oct. 1—an improvement from the 1.9% the CMS originally proposed. The rule will increase pay to the more than 1,600 psychiatric facilities by about $120 million.

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The CMS will pay inpatient rehabilitation providers 2.4% more in 2015, slightly ahead of the 2.2% rate the agency suggested earlier this year. The CMS estimates the increase will result in $180 million in extra reimbursement.

For skilled-nursing facilities, Medicare rates will go up 2%, the same as the proposed rate. Aggregate payments to SNFs are expected to rise by $750 million due to the pay bump, which the nursing home industry viewed positively in May.

The next expected Medicare final rule is for inpatient hospitals. The fiscal 2015 rates could be published as soon as Friday, according to a J.P. Morgan research note. In April, the CMS proposed reducing Medicare payments for inpatient care by $241 million next year.

Follow Bob Herman on Twitter: @MHbherman

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