CMS to pay 0.4% extra to hospitals reporting quality data
News from Modern Healthcare
August 02, 2005 | Tony Fong
Hospitals that report quality data to Medicare will receive a 3.7% increase in inpatient payments in fiscal 2006, under final regulations issued by the CMS. Those that do not will receive a 3.3% rate increase. The data covers 10 quality indicators for acute myocardial infarction, heart failure and pneumonia. The final 2006 inpatient payment regulations also expand the number of DRGs subject to the post-acute transfer policy to 182 from 30 and reduce the outlier threshold to $23,600 from $25,800. As a result of the payment update and other changes, the CMS said it expects urban hospitals to receive an average payment increase of 3.5% and expects rural facilities to see an average increase of 3.3%. The CMS projected a marketbasket inflation rate of 3.2% when it proposed the regulations in May, and the Medicare Payment Advisory Commission earlier this year recommended a 2.8% update for hospital payments.
The CMS also announced that inpatient rehabilitation facilities will receive a payment increase of 3.6% in 2006, under final regulations. Meanwhile, under separate proposed regulations, doctors would see a 4.3% rate cut, as required under the current update formula; however, the CMS and Congress are working to change the formula.