CMS has finalized a rule that decreases inpatient prospective payment system payments by $756 million. On the other hand, long term care hospitals will see payments increased by 1.1%, or about $62 million in FY 2015, which begins on October 1.
However, not all inpatient hospitals will see cuts. If inpatient hospitals are participating in the Hospital Inpatient Quality Reporting Program and use electronic health records, their payments will increase by 1.4%.
This policy will also limit payments for hospital-acquired conditions and readmissions. The maximum reduction in payments under the Hospital Readmissions Reduction Program will increase from 2% to 3%. Meanwhile, acute-care facilities struggling with hospital-acquired conditions will have their Medicare inpatient payments reduced by 1%.
CMS has also released its final rule for hospice payments in FY 2015. Hospice payments are expected to increase by 1.4%, or $230, over the current year. CMS has finalized a requirement that hospices file a “notice of election” within five days after a beneficiary is referred for hospice care or face financial penalties.
Click here to see the final hospice payment rule for FY 2015.
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