AHA to Congress: Urge CMS to fix inadequate inpatient payment proposal

The American Hospital Association called on Congress to urge CMS to make two critical changes to the hospital inpatient prospective payment system proposed rule for the fiscal year 2023.

Specifically, AHA said CMS should:

  • Retrospectively adjust the market basket update for the fiscal year 2022 to account for unprecedented inflation.
  • Eliminate the productivity cut for the fiscal year 2023. 

AHA noted in a June 23 letter to members of the House and Senate that the proposed changes more accurately reflect the cost of providing hospital care to patients and communities. "Since the market basket and associated productivity update use historical data to forecast into the future, the current rising inflation and massive growth in expenses facing hospitals and health systems were not adequately considered in the estimates."

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