MedPAC Considers 1% Payment Update for Hospitals in 2012

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The Medicare Payment Advisory Commission met yesterday in Washington, D.C., to discuss a draft recommendation to Congress that would provide a final update of 1 percent to hospitals for fiscal year 2012, according to an AHA News Now report.

The draft recommendation includes a full "market basket" update of 2.6% for fiscal year 2012 inpatient hospital payments along with a 1.6 percentage point reduction to reflect a mandatory documentation and coding offset, resulting in a 1 percent payment update. The recommendation rejected the productivity cut currently in law.

MedPac is also considering a 1 percent payment updated for hospital outpatient and physician payments, according to the report.

AHA Vice President for Policy Don May responded to the draft recommendations,  "While we continue to believe that the coding adjustment for inpatient payments is too high, we are pleased MedPAC did not recommend applying both the coding offset and the productivity cut."

Read the AHA News Now report on hospital payment updates.

Read more coverage on hospital payment updates:

- MedPAC Proposes Increases for Hospitals, Physicians; 0.6% Payment Increase for ASCs

CMS Says 97% of Hospitals Getting Full Medicare Outpatient Payment Update

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