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Focus on Regulation

Medicare Inpatient Hospital Proposed Rule for Fiscal Year 2014 Released

The Centers for Medicare & Medicaid Services (CMS) released the Hospital Inpatient Prospective Payment System (IPPS) proposed rule for fiscal year (FY) 2014 on April 26, 2013.  The proposed rule addresses changes in payment rates for general acute care and long-term care hospitals effective October 1, 2013, as well as revisions to the Hospital Value-Based Purchasing Program, hospital quality measures programs, and CMS guidance relating to when hospital inpatient admissions are determined reasonable and necessary for payment under Medicare Part A.  The IPPS rule also includes proposals pertaining to implementation of the FY 2015 payment adjustment under the Hospital-Acquired Condition Reduction Program established by the Affordable Care Act.

CMS proposes to increase Medicare payments to acute hospitals that submit quality data under the Hospital Inpatient Quality Reporting program by 0.8 percent in FY 2014, or approximately $27 million, and to increase payments to long-term care hospitals by 1.1 percent, or approximately $62 million. 

The proposed rule will be published in the Federal Register on May 10, 2013, and CMS will accept comments on it until June 25, 2013.  The final rule will be issued by August 1, 2013.