Hospitals, health groups criticize CMS pay proposals

Editor's Note

Hospital groups are criticizing CMS' proposed 2.6% pay increase for 2025, deeming it insufficient for nonprofit hospitals with operating margins near or below zero, according to a July 11 article in Becker’s Hospital CFO Report.

The American Hospital Association and America's Essential Hospitals argue the rise won't cover escalating labor and supply costs, Becker’s reports. They also demand higher outpatient payment rates.

CMS' proposed 2.8% decrease in the physician fee schedule for 2025 also faced backlash. Chip Kahn president and CEO of the Federation of American Hospitals, calls for Congress to intervene, stressing that inadequate resources harm patient care amid high inflation and workforce challenges.