Hospitals groups are pushing back against CMS' proposed 2.6% pay bump for 2025, arguing that the increase is inadequate as a large portion of the nonprofit hospital sector continue to see operating margins in the red or hover above zero.
"CMS has yet again proposed an inadequate update to hospital payments," Ashley Thompson, senior vice president of public policy analysis and development for the American Hospital Association, said in a statement shared with Becker's.
The proposed pay increase comes at a time when many many hospitals and health systems are operating on razor thin margins that make providing high-quality care and investing in their workforce very challenging.
While America's Essential Hospitals has backed CMS' proposal to improve access to coverage and increase pay for non-opioid treatments for pain relief, it is also pushing the agency to increase the hospital outpatient payment rate in in its final rule, which will be published in early November,
"The proposed update to overall outpatient payment rates is too little to cover the rapidly rising costs of hospital care, including escalating labor costs and the ongoing impact of supply chain shortages," America's Essential Hospitals Director of Policy Robert Nelb told Becker's.
CMS on July 10 also proposed changes to the physician fee schedule for 2025, which includes a 93 cent (2.8%) conversion factor decrease from 2024. The proposed physician fee schedule conversion factor for 2025 is $32.36, down from $33.29 in 2024.
The proposal was met with criticism by physician and hospital groups alike.
"Doctors and hospitals are the backbone of patient care, but without adequate resources, patients suffer," Chip Kahn, president and CEO of the Federation of American Hospitals, said in a statement shared with Becker's. "At a time of high inflation and workforce challenges, it's reckless to impose real cuts on physicians and for hospital rates to fall further below the cost of providing care for seniors. Since CMS has not stepped up, Congress needs to take action to preserve patient access to high-quality care."