MedPAC Recommends 3.3% Raise to Hospitals in 2021

The Medicare Payment Advisory Commission on Thursday voted unanimously to recommend hospitals receive a 3.3% raise in 2021. The CMS has scheduled a 2.8% pay raise to hospitals for inpatient and outpatient services. MedPAC recommended that Congress increase net payments by 3.3% but change the structure of the pay boost to close the gap between reimbursement rates for physician offices and hospital outpatient departments. They also recommended incentivizing hospitals to reduce mortality and improve patient satisfaction by tying some of their raise to quality improvements. The commission needs to find a way to make sure that hospitals are more accountable for the total cost of care, said MedPac Commissioner Dana Safran, head of measurement for Haven, the healthcare venture formed by Amazon, Berkshire Hathaway and JPMorgan Chase.

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