CMS issues 2015 proposed IPPS rule


The Centers for Medicare & Medicaid Services late Wednesday issued a proposed rule for 2015 that reduces payment for readmissions and hospital-acquired conditions, but provides no changes to the controversial two-midnight rule.

UPDATE: Industry leader disappointed IPPS proposed rule doesn't address two-midnight rule

The agency proposes to increase the payment rate for inpatient stays at general acute care hospitals by 1.3 percent in fiscal year 2015, but only 0.8 percent for long-term care hospitals.

CMS Administrator Marilyn Tavenner said in an announcement that the aim of the proposed rule is to improve hospital performance while "creating an environment for improved Medicare beneficiary care and satisfaction."

The proposed rule includes the following changes:

Readmission reductions: CMS proposes to increase the maximum reduction in payments under the Hospital Readmissions Reduction Program from 2 percent to 3 percent in fiscal year 2015. The agency also plans to assess hospital penalties using five readmissions measures endorsed by the National Quality forum.

Value-based purchasing: The agency will increase incentive payments to 1.5 percent of the base operating diagnosis-related group payment amounts to all participating hospitals. The total amount available for value-based incentives will be $1.4 billion, CMS estimated in the annoucnement.

Hospital-acquired conditions: The proposed rule calls for a 1 percent reduction in Medicare inpatient payments for hospitals that score in the top quartile for the rate of these preventable conditions. CMS projects that so far the HAC program has saved $25 million by reducing Medicare payments for these conditions.

Look for additional updates about the proposed rule at FierceHealthcare.

To learn more:
- read the announcement