CMS
NEWS
FOR IMMEDIATE RELEASE
August 2, 2017
Contact: CMS Media Relations
CMS finalizes 2018
payment and policy updates for Medicare hospital admissions
Final rule supports transparency, flexibility, program
simplification and innovation in the Medicare program
Today, the Centers for Medicare & Medicaid Services (CMS) issued the
fiscal year 2018 Medicare Inpatient Prospective Payment System and
Long-Term Care Hospital Prospective Payment System final rule, which
updates 2018 Medicare payment and policies when patients are discharged
from hospitals. The final rule relieves regulatory burdens for providers,
supports the patient-doctor relationship in healthcare, and promotes transparency,
flexibility, and innovation in the delivery of care for Medicare patients.
“This final rule will help provide flexibility for acute and long-term
care hospitals as they care for Medicare’s sickest patients,” said CMS
Administrator Seema Verma. “Burden reduction and payment rate increases for
acute care hospitals and long-term care hospitals will help ensure those
suffering from severe injuries and illnesses have access to the care they
need.”
In the final rule, CMS is increasing the amount of uncompensated care
payments made to acute care hospitals by $800 million to approximately $6.8
billion for fiscal year 2018. Uncompensated care represents healthcare
services provided by hospitals or providers for which they don't get
reimbursed. Often uncompensated care arises when people don't have
insurance and cannot afford to pay the cost of care. CMS is also providing
further clarification about discounts given to uninsured patients who meet
the hospital’s charity care policy.
In relieving providers of administrative burdens and encouraging patient
choice, CMS is finalizing a one-year regulatory moratorium on the payment
reduction threshold for patient admissions in long-term care hospitals. CMS
continues to evaluate this policy. CMS is also finalizing provisions that
reduce clinical quality measure reporting requirements for hospitals that
have implemented electronic health records.
Due to the combination of payment rate increases and other policies and
payment adjustments, particularly in changes in uncompensated care
payments, acute care hospitals will see a total increase in Medicare
spending on inpatient hospital payments of $2.4 billion in fiscal year
2018. Based in part on the changes included in the final rule, overall
payments to long-term care hospitals will decrease by $110 million in
fiscal year 2018.
In addition to the payment and policy updates for Medicare hospital
admissions, the final rule addresses changes to how the public is notified
of Medicare terminations of certain providers and implements the statutory
extension of the Rural Community Hospital Demonstration.
CMS also today issued a notice with comment period updating 2018
Medicare payment policies and rates for inpatient psychiatric facilities.
CMS estimates that Medicare payments to inpatient psychiatric facilities
will increase by $45 million, or nearly one percent, in fiscal year 2018.
For a fact sheet on the fiscal year 2018 Medicare Inpatient Prospective
Payment System and Long-Term Care Hospital Prospective Payment System final
rule, please visit: https://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2017-Fact-Sheet-items/2017-08-02.html
For a fact sheet on the fiscal year 2018 Medicare Inpatient Psychiatric
Prospective Payment System notice with comment period, please visit: https://www.cms.gov/Newsroom/MediaReleaseDatabase/Fact-sheets/2017-Fact-Sheet-items/2017-08-02-2.html
The fiscal year 2018 Medicare Inpatient Prospective Payment System and
Long-Term Care Hospital Prospective Payment System final rule (CMS-1677-F)
and the fiscal year 2018 Medicare Inpatient Psychiatric Prospective Payment
System notice with comment period (CMS-1673-NC) can be downloaded from the Federal
Register at: https://www.federalregister.gov/public-inspection.
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