In OPPS rule, CMS increases payment rates by 2.9%; finalizes new Conditions of Participation

American Hospital Association November 1, 2024

The Centers for Medicare & Medicaid Services Nov. 1 issued a final rule that increases Medicare hospital outpatient prospective payment system rates by a net 2.9% in calendar year 2025 compared to 2024. This includes a 3.4% market basket update, offset by a 0.5 percentage point cut for productivity.

In a statement shared with the media, AHA Senior Vice President Ashley Thompson said, “Medicare’s sustained and substantial underpayment of hospitals has stretched for almost two decades, and today’s final outpatient rule only worsens this chronic problem. The agency’s final increase of less than 3% for outpatient hospital services will make the provision of care, investments in the health care workforce, and addressing new challenges, such as cybersecurity threats, more...

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