Long-Term Care

CMS proposes cutting inpatient payments by 0.1%

Contemporary Long-Term Care Weekly, April 22, 2010

On April 19, CMS released a hospital inpatient and long-term care prospective payment system proposed rule for fiscal year 2011 that would cut average inpatient payments by 0.1%. The estimate does not include the 0.25% mandated market basket cut that was included in the healthcare reform legislation signed into law last month. When that cut is put into place, average payments will decrease by 0.35% compared to fiscal 2010 payments, according to the American Hospital Association.

CMS is also proposing to update long-term care hospital rates by 2.4% for inflation and apply an adjustment of 2.5% for the effect of documentation and coding that did not reflect increases in patients' severity of illness. Under the proposed rule, the long-term payments are estimated to increase by 0.8% or $41 million. The proposed rule will apply to approximately 3,500 acute care hospitals paid under the Inpatient Prospective Payment System (IPPS), and approximately 420 long-term care hospitals paid under the Long-Term Care Hospital Prospective Payment System (LTCH PPS), beginning with discharges occurring on or after October 1, 2010. Proposed payment rates are based on the most recently available data, CMS said, and may be revised in the final rule to reflect more current data.

For complete coverage of CMS’ proposed rule, please visit HealthLeaders Media.

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