CMS Wants to Boost Inpatient Hospital Payments by 1.6%

CMS wants to increase Medicare payments for inpatient hospital services by 1.6%—or about $2 billion—in 2021. The agency’s proposed inpatient prospective payment system, or IPPS, rule would increase operating payments by about 2.5%. General acute hospitals that are meaningful use EHR users and fulfill the requirements of the inpatient quality reporting program will see their operating payments rise 3.1%. Changes to uncompensated care payments, add-on payments for new technologies and capital payments would lower IPPS payments by about 0.4%. But some of the proposals aren’t sitting well with providers, particularly the continued push for hospitals to disclose their negotiated contract terms. While CMS claims the disclosures will improve price transparency, the American Hospital Association said the plan won’t reach that goal.

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