On Tuesday, August 25, 2020, the Centers for Medicare & Medicaid Services (“CMS”) released an interim final rule that updates the Medicare Conditions of Participation to require all hospitals to which 42 CFR Part 482 applies, as well as critical
CAH
COVID-19 Update: Highly-Impacted and Rural Hospital Distribution Imminent
On the evening of May 1, 2020, HHS announced that it will distribute an additional $22 billion in payments from the Provider Relief Fund to hospitals with high volumes of COVID-19 patients ($12 billion) and rural hospitals ($10 billion) in…
COVID-19 Update: CMS Issues Additional Waivers to Assist Providers
The Centers for Medicare & Medicaid Services (CMS) temporarily suspended a number of rules to boost frontline medical staff at healthcare facilities during the COVID-19 pandemic. The new waivers expand on the workforce flexibilities announced by CMS on March 30,…
CMS releases FY 2020 IPPS and LTCH PPS final rule
On August 2, 2019, the Centers for Medicare & Medicaid Services (CMS) published its Fiscal Year (FY) 2020 Medicare Hospital Inpatient Prospective Payment System (IPPS) and Long Term Acute Care Hospital (LTCH) Prospective Payment System (PPS) final rule (CMS-1716-F). The final rule is scheduled to be published in the Federal Register on August 16, 2019. CMS also published a fact sheet describing the proposed rule, which may be found here. This final rule is effective October 1, 2019.
CMS states that the final rule “reflects the agency’s efforts to transform the healthcare delivery system through competition and innovation to provide patients with better value and results.”
Medicare payments for inpatient hospital services are anticipated to increase by 3.0%, or $3.8 billion in FY 2020. CMS projects a market basket update of “3.0 percent reduced by a 0.4 percentage point productivity adjustment. This also reflects a +0.5 percentage point adjustment required by legislation.”
Medicare payments for LTCHs are estimated to increase by 1.0%, or $43 million, in FY 2020.
Below we address some of the policies CMS finalized for FY 2020.