On August 2nd, the Centers for Medicare and Medicaid Services (CMS) issued a final rule updating Medicare payment policies for hospitals under the Inpatient Prospective Payment System (IPPS) and the Long-Term Care Hospital (LTCH) Prospective Payment System (PPS) for fiscal year (FY) 2022.
Under the rule, standardized IPPS payments will increase by 2.5 percentage points, or $3.4 billion. Combined with other changes, including a $1.4 billion decrease in disproportionate share hospital (DSH) and uncompensated care payments, overall payments to hospitals will increase by $2.3 billion. Notably, the rule does not address proposals included in the proposed rule related to payments to hospitals for direct graduate medical education (GME) and indirect medical education (IME), and to organ acquisition payment policy for transplant hospitals, donor community hospitals, and organ procurement organizations. CMS notes that due to the “number and nature” of comments on these proposals, they will be addressed in future rulemaking.
SPG’s summary of this rule is attached. The final rule is available here. A fact sheet is available here.
