The proposals would cause an increase in Medicare reimbursement rates for fiscal year 2017. CMS plans to finalize the details by August 1.
The proposals, which will go into effect October 1, will influence acute care hospitals, inpatient rehabilitation facilities, long-term acute care hospitals, skilled nursing facilities and hospice providers.
Below are the proposed rate increases by sector, as well as Moody’s Investors Service’s views on them.
- Acute care hospitals: 0.9 percent increase — Moody’s sees this as modestly credit positive.
- Inpatient rehabilitation facilities: 1.45 percent increase — Moody’s sees this as modestly positive for operators.
- Long-term acute care hospitals: 1.45 percent increase — Moody’s believes this will “offset the implementation of other changes to the payment system that will be negative for issuers operating LTHCs.”
- Skilled nursing facilities: 2.1 percent increase — Moody’s sees this as credit positive for operators.
- Hospice providers: 2.0 percent increase — Moody’s sees this as credit positive for operators.
More articles on healthcare finance:
Patient payment responsibility spiked 13% in 2015
MedAssets-Precyse’s nThrive unveils collections tools
Orbograph rolls out technology to 200+ hospitals and physician groups
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.