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Hospices to see 1% increase in Medicare payments
Modern Healthcare

Hospices are slated to receive an increase in their Medicare payments in the coming fiscal year under a final rule issued Friday by the CMS. Under the rule, hospices will see a 1% increase in payments, totaling $160 million beginning Oct. 1.  According to the CMS, the increase was the net result of the agency updating its hospice payment percentage to 1.7%, coupled with a 0.7 of a percentage point cut as it continues its change in how hospice rates are calculated. The phasing out of the CMS’ “budget neutrality adjustment factor”—implemented in 1997 as a shift away from its old index to its current model for calculating hospice payments—calls for the adjustment factor to be reduced by 15% through fiscal 2016.