FY 2005 inpatient prospective payment system rule announced
Case Management Weekly, August 16, 2004
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CMS recently issued the fiscal year 2005 hospital inpatient prospective payment system (PPS) regulation. According to CMS, the final regulation increases payments to acute care hospitals, and provides financial relief to rural hospitals. Urban hospitals will see an average 5.7 % increase in payments next year, and rural hospitals will receive an increase of 6.2 %. In FY 2005, Medicare payments to approximately 3,900 acute care hospitals under the hospital inpatient PPS are projected to hit $105 billion, up from around $100 billion in fiscal year 2004.
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