AHA urges 2024 Medicare payment adjustment due to 'unprecedented pressure'

A one-time adjustment to fiscal year 2024 Medicare payments should be made to reflect recent inadequate reimbursements and help healthcare systems facing "unprecedented pressure," the American Hospital Association urged in a Dec. 1 letter.

Writing to the Medicare Payment Advisory Commission (MedPAC), AHA said inflationary pressures emerging later in fiscal 2022 were not reflected in any payment updates hospitals and healthcare systems received. Specifically, while inflation ranged from 6.2 percent to 9.1 percent, hospitals, for example, only received a payment update of 2.6 percent.

"Therefore, to support hospitals and health systems with their ongoing financial challenges, we urge MedPAC to recommend a one-time retrospective adjustment be added to the FY 2024 market basket updates for these providers," the AHA wrote.

The letter also includes additional policy recommendations designed to help with the ongoing labor shortages in the healthcare system and payments to primary care providers.

The full letter can be found here:

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