tci Medicare Compliance & Reimbursement - 2005 Issue 32

HOSPITALS: Count Pennies To Cope With Proposed IPPS Rates

AHA calls payment increase 'inadequate.'Hospitals, watch out:  The Centers for Medicare and Medicaid Services' proposal to expand the post-acute care transfer policy could cut facilities' Medicare payments.CMS' inpatient prospective payment system proposed rule could cut nearly $900 million from hospital payments in fiscal year 2006, the American Hospital Association wrote in a letter to CMS administrator Mark McClellan. CMS' post-acute care transfer policy expansion dramatically reduces hospitals' Medicare payments, undermines clinical decision-making and "penalizes hospitals for providing the right care at the right time and in the right setting," the AHA argues.CMS' proposed 2...

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