The cut is intended to offset the effect of coding changes in the classification of patients. CMS claims the coding changes have caused hospitals to receive increased reimbursement. However, critics of the change have argued that the increased reimbursements could be due to truly sicker patients being treated by hospitals. This may be due, in part, to healthier patients being treated as outpatients.
Members of both the Senate and the House and hospital trade associations, including the American Hospital Association, had sent letters to CMS urging the agency to reconsider the cuts.
Rich Umbdenstock, president and CEO of the AHA, said in a statement that the cuts would have unintended consequences, such as potential job cuts. “CMS…failed to acknowledge independent studies that show CMS’ methodology does not take into account what we all know: hospital patients are increasingly sicker,” he said in a statement.
Read more about the inpatient pay cuts:
– Senate Urges CMS to Reconsider 2.9% Payment Cut to Hospitals
– House Urges CMS to Reconsider 2.9% Payment Cut to Hospitals in FY 2011
– CMS Issues Proposed Rule for 2011 Inpatient Payment System
