Medicare payment rates for inpatient services at acute-care hospitals will increase 1% in fiscal 2012, while payment rates for long-term acute-care hospitals will increase 1.8%, according to a CMS final rule issued late Monday (PDF).
Inpatient payments to get boost; CMS targets readmissions
The rate increases are projected to boost acute-care payments by $1.13 billion and LTAC payments by $126 million.
The updates in the Inpatient Prospective Payment System and the Long Term Care Hospital Prospective Payment System are also intended to bolster the Hospital Inpatient Quality Reporting Program and established the framework for a new quality reporting program for hospitals paid under the LTAC PPS.
A new Hospital Readmissions Reduction Program will reduce payments for discharges after September 2012 to hospitals determined to have “excess readmissions” for acute myocardial infarction, heart failure, and pneumonia. The rule also established the methodology used to calculate excess readmission rates for these conditions.
Medicare also will add a spending per beneficiary measure, under the final rule, for both the hospital IQR program and the new value-based purchasing program that will assess beneficiary spending from three days prior to a hospital admission through 30 days after discharge.
Additionally, the rule requires LTACs to begin reporting on their PPS requirement beginning Oct. 1, 2012.
At least one provider advocate expressed guarded support for the payment update.
“Although we are disappointed CMS continues to implement coding cuts, we are pleased that it acknowledged the earlier plan would have been detrimental to hospitals' mission of caring,” Rich Umbdenstock, president and CEO of the American Hospital Association, in a written statement.
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