This increase serves as a current law market-basket update for the hospital inpatient prospective payment system and the outpatient prospective payment system. The recommendations aim to maintain some financial pressure on hospitals to mitigate cost growth while reducing the disparity between on-campus and off-campus payments.
At the meeting, MedPAC also recommended a 2 percent payment increase for long-term care hospitals. However, it suggested eliminating payment updates for skilled nursing facilities and reducing payment for inpatient rehabilitation by 5 percent.
Along with the payment updates, MedPAC recommended replacing current quality programs with the Hospital Value Incentive Program. The new program would eliminate the Inpatient Quality Reporting Program and merge the existing Hospital Readmissions Reduction Program, Hospital Value-based Purchasing Program and Hospital-acquired Condition Reduction Program.
The AHA gave the 2 percent payment update for the IPPS and OPPS its blessing, but called on MedPAC to delay the new value incentive program due to concerns with its design.
More articles on finance:
Elisabeth Rosenthal: Trump ‘did something right’ with hospital price rule
Michigan system will waive ER deductibles, copays for furloughed federal workers
Trump plan could hike drug costs for ACA exchange plan users
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.