CMS Releases Proposed Medicare IPPS Rule - April 22, 2010

On Monday April 19, the Centers for Medicare & Medicaid Services (CMS) released its proposed Inpatient Prospective Payment System (IPPS) rule for FY 2011. CMS’ proposed payment changes would decrease operating payments to hospitals under the IPPS by 0.1% (or $142 million) and would decrease capital payments by 0.2% (or $20 million) in FY 2011. Hospitals in New England are expected to face the largest payment decreases (0.9%), while urban hospitals in the Pacific are expected to see payment increases of 0.5%. The proposed rule does not include provisions from the Patient Protection and Affordable Care Act (PPACA). Instead, CMS will issue separate guidance on the implementation of PPACA in the coming months. The proposed rule will be published in the Federal Register on May 4, and comments are due by June 18. The final rule will be issued by August 1.

NAPH is closely reviewing the proposed rule and evaluating issues of critical importance to our members. We have developed a short analysis of other details.