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CMS issues final proposed rule for 2005 inpatient payment increases

Case Management Weekly, May 19, 2004

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Acute-care hospitals, specifically rural facilities, are the target of CMS' latest announcement on inpatient payment increases and other payment-policy changes for 2005. The rule encompasses a wide variety of changes, including

• Updating the labor markets that are used to determine hospital payment rates in fee-for-service Medicare.
• Considering 10 proven quality indicators as payment incentives. Hospitals must provide better information about their services to show improved care, McClellan said.
• Updating diagnosis related groups (DRGs)-such as increasing payment to hospitals treating burn patients with respiratory failure who require long-term mechanical ventilation. Also, the proposed rule would reassign heart assist devices to the DRG for heart transplants. The DRG will be called "Heart Transplant or Implant of Heart Assist System," and will increase payment for the systems.
  

Source: Patient Financial Services Advisor, May 2004, HCPro, Inc

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