Hospitals will receive an additional $3.2 billion for inpatient services next fiscal year under a Biden administration rule finalized Thursday.
The 2.9 percent boost, set to take effect Oct. 1, is similar to what CMS proposed in April. The final rule also will pay smaller hospitals a bonus for keeping vital drugs in stock.
Why it matters:Â When the payment hike was first proposed, hospital groups complained it was not enough to keep up with rising costs for facilities.
CMS projects that payments to disproportionate share hospitals, which treat a large number of low-income patients, will decrease by $200 million. However, Congress has traditionally stepped in to forestall previous disproportionate share hospital cuts.
CMS is finalizing another proposal aimed at ensuring that hospitals have enough stock of certain medicines on hand in case of a shortage.
The rule gives a separate payment to small, independent hospitals that maintain such a buffer stock.
âThese hospitals are particularly vulnerable to supply disruptions during shortages because they lack the resources of hospitals that are larger and/or are part of a chain organization,â according to a fact sheet on the rule.
CMS hinted it could expand the program to other hospitals.
The agency in April floated penalizing hospitals that donât address drug shortages, a move that got significant pushback from the hospital industry.
CMS to bump hospital payments $3.2 billion next year
politicopro.com
August 23, 2024 11:43 am
Hospitals will receive an additional $3.2 billion for inpatient services next fiscal year under a Biden administration rule finalized Thursday.
The 2.9 percent boost, set to take effect Oct. 1, is similar to what CMS proposed in April. The final rule also will pay smaller hospitals a bonus for keeping vital drugs in stock.
Why it matters:Â When the payment hike was first proposed, hospital groups complained it was not enough to keep up with rising costs for facilities.
CMS projects that payments to disproportionate share hospitals, which treat a large number of low-income patients, will decrease by $200 million. However, Congress has traditionally stepped in to forestall previous disproportionate share hospital cuts.
CMS is finalizing another proposal aimed at ensuring that hospitals have enough stock of certain medicines on hand in case of a shortage.
The rule gives a separate payment to small, independent hospitals that maintain such a buffer stock.
âThese hospitals are particularly vulnerable to supply disruptions during shortages because they lack the resources of hospitals that are larger and/or are part of a chain organization,â according to a fact sheet on the rule.
CMS hinted it could expand the program to other hospitals.
The agency in April floated penalizing hospitals that donât address drug shortages, a move that got significant pushback from the hospital industry.