tci Medicare Compliance & Reimbursement - 2003 Issue 31

Hospitals: CMS PROPOSES 3.8-PERCENT OPPS UPDATE

Hospital payments under the outpatient prospective payment system would get a 3.8-percent increase under the proposed OPPS rule released the Aug. 6 by the Centers for Medicare and Medicaid Services. Aggregate outpatient payments to the nearly 4,400 OPPS hospitals would go up nearly 5.7 percent under the rule, from an estimated $21.6 billion in 2003 to about $22.8 billion in 2004. The proposed rule bases 2004 payment rates on actual hospital costs derived from 2002 claims for outpatient services, and it introduces several refinements "such as increasing the number of claims used to develop...

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