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CMS proposes $4.7 billion hike to inpatient spending, change wage index
Modern Healthcare

The CMS wants to increase the wage index that sets the nation’s hospital payments to address a disparity in the system. Urban hospitals would be on the losing end of this change. The rule aims to change the formula to pay rural hospitals which have some of the lowest reimbursement rates in the country.

The agency late Tuesday released its annual proposed update for the hospital inpatient prospective payment system for federal fiscal year 2020 that starts in October. Overall, the CMS projected total Medicare spending on inpatient hospital services, including capital, to climb by $4.7 billion in fiscal 2020.