Earlier this week, CMS released its proposed rule on Medicare payments for acute-care and long-term acute-care hospitals for fiscal year 2013, and although it included a small pay hike, the American Hospital Association was "deeply disappointed" with what CMS proposed, especially in the new coding cuts.
In the proposed rule, documentation and coding adjustments would result in a cumulative 0.2 percent gain in FY 2013 payments, but along the way, there were prospective cuts to adjustments from previous years. AHA President and CEO Rich Umbdenstock said CMS "continues to use outdated data and a flawed methodology to put into place these cuts," and the low reimbursement boost for inpatient care is not particularly noteworthy, as "payments to hospitals for these services are already below the cost of providing the care."
In addition, AHA criticized CMS for not taking the 2 percent sequestration cuts into account. Effective Jan. 3, 2013, there will be automatic, across-the-board cuts in the U.S. budget that resulted from the failed national deficit talks of last summer, and hospitals and other providers could ultimately see a reduction of 2 percent in their Medicare payments.
"Taken together, this will result in a negative update for hospitals next year unless changes are made," Mr. Umbdenstock said. "Now is not the time to further reduce funding for critical hospital services. We strongly urge CMS to reconsider its proposal and protect seniors' access to care they need and deserve."
In the proposed rule, documentation and coding adjustments would result in a cumulative 0.2 percent gain in FY 2013 payments, but along the way, there were prospective cuts to adjustments from previous years. AHA President and CEO Rich Umbdenstock said CMS "continues to use outdated data and a flawed methodology to put into place these cuts," and the low reimbursement boost for inpatient care is not particularly noteworthy, as "payments to hospitals for these services are already below the cost of providing the care."
In addition, AHA criticized CMS for not taking the 2 percent sequestration cuts into account. Effective Jan. 3, 2013, there will be automatic, across-the-board cuts in the U.S. budget that resulted from the failed national deficit talks of last summer, and hospitals and other providers could ultimately see a reduction of 2 percent in their Medicare payments.
"Taken together, this will result in a negative update for hospitals next year unless changes are made," Mr. Umbdenstock said. "Now is not the time to further reduce funding for critical hospital services. We strongly urge CMS to reconsider its proposal and protect seniors' access to care they need and deserve."
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