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CMS announces new payment reforms

Case Management Weekly, August 8, 2007

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CMS' last week issued the final rule that takes significant steps to improve the accuracy of Medicare's payment under the acute care hospital inpatient prospective payment system (IPPS).

"The IPPS payment reforms finalize the changes we proposed in April and build upon three years of consistent, incremental improvements to Medicare inpatient hospital payments," said CMS Acting Deputy Administrator Herb Kuhn, in a press release. "Medicare payments for inpatient services will now be more accurate and better reflect the severity of the patient's condition."

The IPPS payment reforms would restructure the inpatient DRGs to account more fully for the severity of each patient's condition. In addition, the rule includes provisions to ensure that Medicare no longer pays for the additional costs of certain preventable conditions (including certain infections) acquired in the hospital.

Publication date for this rule will be August 22, 2007.

To read the CMS Press Release issued today, click here:

To read the CMS Fact Sheets issued today, click here:

Source: CMS

Other articles of interest:

CMS releases proposed 2008 hospital inpatient rule

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