News Headlines Article

IPPS 2016 Proposed Rule Raises Hospital Pay, Emphasizes Quality
HealthLeaders Media

In the fiscal year (FY) 2016 Inpatient Prospective Payment System proposed rule, released late Friday, the Centers for Medicaid & Medicare Services announced the usual changes to MS-DRGs and their relative weights, the market basket update, and the expansion of its value-based payment quality measures, as it has in previous years.

The proposed increase in operating payment rates to hospitals is 1.1 percent. According to CMS: “Hospitals that do not successfully participate in the Hospital IQR Program and do not submit the required quality data will be subject to a one-fourth reduction of the market basket update.” Further, the agency states that it “projects that the rate increase, together with other proposed changes to IPPS payment policies, will increase IPPS operating payments by approximately 0.3 percent.”