Advisory Board April 12, 2024
CMS recently released its proposed rule for the Inpatient Prospective Payment System (IPPS) for fiscal year (FY) 2025, which would increase payments by 2.6%. However, many hospital groups say that the payment increase is “woefully inadequate.”
Your guide to CMS’ 14 value-based payment models
Details on the proposed rule
Under the proposed rule, CMS plans to increase payments to inpatient hospitals by 2.6% for FY 2025 — a slight decline from the 2.8% increase in FY 2024. The update would increase hospital payments by $2.9 billion, as well as increase disproportionate share hospital payments by $560 million, and new medical technology payments by $94 million.
Other provisions in the proposed rule include:
- The continuation of the low-wage index...
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