CMS Issues Final FY 2019 Inpatient PPS Update

CMS released its annual Inpatient Prospective Payment System final rule on Aug. 2, 2108, which increases price transparency for patients and boosts payments to acute care hospitals. CMS projects that the rate increase, together with other changes to IPPS payment policies, will increase Medicare spending on inpatient hospital services in FY 2019 by approximately $4.8 billion, including an increase in new technology add-on payments of $0.2 billion. Under the final rule, acute care hospitals that report quality data and are meaningful users of EHRs will receive a 1.85 percent increase in Medicare operating rates in fiscal year 2019. CMS arrived at this increase based on a 2.9 percent market basket update and 0.5 percentage point increase required by law, adjusted down 0.8 percentage points for productivity and 0.75 percentage points as required by the ACA. For details, see today’s Financial Feature.

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