Note from Hugh
Medicare Weekly Update, August 7, 2007
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As discussed below, late last week CMS issued the display copy of the 2008 IPPS final rule. CMS also issued a press release and two fact sheets on the final rule. Based on my preliminary review of the materials released last week, it appears that CMS is moving forward with many, but not all, of the IPPS changes announced in the proposed rule.
Significant changes implemented in the final rule include:
- Adopting 745 new MS-DRGs to replace the current 538 DRGs.
- Reducing the outlier threshold.
- Continuing the transition to cost-based DRG weights.
- Eliminating the large urban add-on payment.
- Expanding the list of quality measures that hospitals are required to submit in order to receive the full update of FY 2008.
- Implementing a payment limitation for certain hospital acquired conditions.
- Implementing a payment reduction when a hospital replaces a medical device that was received for free or at a reduced cost due to a recall or warranty claim.
The final rule is scheduled for publication in the August 22 Federal Register and will apply to discharges on or after October 1, 2007.
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