CMS’ proposed rule recommended a much lower increase at 0.9 percent. With the higher reimbursement rate, roughly $2 billion in extra payments will be doled out to hospitals.
However, all is not rosy for hospitals in the long term, according to Moody’s. Lower Medicare payments to fund the avoidable hospital readmission program and the automatic 2 percent sequestration cuts from the failure of last year’s supercommittee are still to come.
“Beyond 2013, we expect much lower annual increases, given the scope of the federal budget deficit and hardwired rate cuts included in healthcare reform,” according to the report.
More Articles on Moody’s Reports:
Moody’s to Review Beebe Medical Center’s Bond Rating Amid Class Action Lawsuit
Moody’s: New Massachusetts Law Will Hinder Hospitals’ Revenue Growth
