CHA News Article

CMS Estimates Inpatient Payments Will Decrease by 0.8 Percent for FFY 2015

The Centers for Medicare & Medicaid Services (CMS) has proposed a 1.3 percent increase for FFY 2015 for hospitals that successfully participate in the Hospital Inpatient Quality Reporting (IQR) program and are meaningful users of electronic health records. Taken together with continued reductions for coding and documentation and changes in hospital value-based purchasing (VBP), readmissions and the hospital-acquired conditions (HAC) penalty program, CMS estimates that total inpatient prospective payment system (IPPS) payments will decrease by 0.8 percent, or $241 million, compared to FFY 2014.

Among a number of significant provisions, CMS proposes to implement the new core-based statistical areas for the area wage index. This will be accomplished through a transition for hospitals similar to what was done in 2005. In addition, the changes include adding nine new IQR measures for FFY 2017 (removing five measures for 2015), methodology and measure changes to the HAC reduction program, adding hospital VBP measures through FFY 2020, and adding CABG to the list of readmissions measures subject to the penalty in FFY 2017.

The proposed rule also includes updates to the FFY 2015 long-term care hospital (LTCH) prospective payment system, with CMS estimating payments to LTCHs will increase by 0.8 percent, or approximately $44 million, as compared to FFY 2014.

CHA is currently reviewing the proposed rule and will provide members with a first-glance summary of the IPPS provisions in CHA News tomorrow. The proposed rule is attached.