CMS proposed policies that would result in a net decrease in hospital payments compared to the previous year. The American Hospital Association’s “cost of caring” report details the findings. Some massive increases in input costs include supporting the workforce and the rising prices for food, energy, drugs, supplies, and equipment.
The study cites Medicare payment cuts that further threaten the ability to care for patients and communities. Furthermore, the study notes Medicare and Medicaid as accounting for 60 percent of all care provided by hospitals and caregivers and reimburse less than the cost of care provided.
CMS’ proposed rule change does not mean that policies will be finalized. Healthcare providers have the opportunity to request changes. The AHA urged CMS to adjust the market basket to account for the unprecedented inflationary environment that hospitals and health systems are experiencing and to eliminate the productivity cut. Additionally, the AHA has asked Congress to weigh in with the agency to make changes in its final regulation.
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