tci Medicare Compliance & Reimbursement - 2004 Issue 28

HOSPITALS: See Which Hospitals Stand To Win With IPPS 2005

Proposed rule is a mixed bag for facilities. For only the third time in 21 years, hospitals will receive a full "market-basket" update under Medicare's inpatient prospective payment system (IPPS) in fiscal year 2005 -- but only if they submit quality information to CMS. So says CMS'proposed IPPS rule for next year, reflecting the terms of last year's Medicare Modernization Act. The agency now estimates that the market-basket increase -- the projected rate of inflation in the goods and services used by hospitals -- will be 3.3 percent. Because of this and other reimbursement adjustments, CMS projects that...

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