CMS issues final PPS rule for 2017

Editor's Note

The Centers for Medicare & Medicaid Services on August 2 issued its final rule for the FY 2017 hospital inpatient prospective payment system (PPS), which increases rates by 0.95%.

The 0.95% increase reflects the projected hospital market basket update of 2.7% for those hospitals that were meaningful users of electronic health records in 2015 and that submit data on quality measures, less a 0.3% cut for multi-factor productivity and an additional cut of 0.75% in accordance with the Affordable Care Act.

Among the provisions, the final rule:

• finalizes two adjustments to reverse the effects of the 0.2% cut it instituted when implementing the two-midnight policy
• increases Medicare disproportionate share hospital payments by 75% by FY 2019
• adds four new claims-based measures for the FY 2019 Inpatient Quality Reporting Program, and removes 15 measures
• adds two condition–specific payment measures (myocardial infarction and heart failure) to the Hospital Value-Based Purchasing Program beginning FY 2021 and a 30-day coronary artery bypass mortality measure beginning FY 2022
• makes changes to the Hospital Acquired Conditions Reduction Program in FY 2017 that includes changes to the scoring methodology−from decile-based scoring to continuous scoring.

Date 2016-08-02 Title Hospital Inpatient Prospective Payment System (IPPS) and Long Term Acute Care Hospital (LTCH) Final Rule Policy and Payment Changes for Fiscal Year (FY) 2017 Contact [email protected] Hospital Inpatient Prospective Payment System (IPPS) and Long Term Acute Care Hospital (LTCH) Final Rule Policy and Payment Changes for Fiscal Year (FY) 2017 Today, the Centers for Medicare & Medicaid Services (CMS) issued a final rule to update fiscal year (FY) 2017 Medicare payment policies and rates under the Inpatient Prospective Payment System (IPPS) and the Long-Term Care Hospital (LTCH) Prospective Payment System (PPS).