CMS Issues IPPS Proposed Rule for Comment

The 2010 Inpatient Prospective Payment System (IPPS) proposed rule, issued May 1, is a good indicator that times are tough for hospitals, and they’re only going to get tougher.

Acute care and long-term care hospitals can expect meager payment rate updates beginning Oct. 1 due to a “slowing rate of inflation in the economy” and increases in aggregate payments due to hospital coding practice changes that do not reflect patient severity of illness (SOI) increases, according to a Centers for Medicare & Medicaid Services (CMS) press release.

CMS is proposing the following updates to payment rates:

Facility Type Inflation Update % Adjustment % Total Update %
Acute care 2.1 -1.9 0.2
Long-term care 2.4 -1.8 0.6

Hospitals can expect updates to decline further in 2011 and 2012 as additional adjustments of approximately 6.6 percentage points come due.

The proposed rule went on display May 1 at the Office of the Federal Register.

Public comment on the proposed rule will be accepted until June 30. The final rule is due for publication no later than Aug. 1.

Look for complete details of the 2010 IPPS proposed rule in the July issue of Coding Edge.

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