CMS Proposes New Hospital Inpatient And Skilled Nursing Facility Prospective Payment Systems

 
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The Centers for Medicare and Medicaid Services (CMS)

published proposed rules for the Hospital Inpatient Prospective Payment

System (IPPS) and Skilled Nursing Facility Prospective Payment

System (SNF PPS) for fiscal year 2009. CMS is soliciting

comments on the IPPS proposed rule until June 13, 2008 and on

the SNF PPS until June 30, 2008. Providers should take the

opportunity to comment on the proposed rules, as each addresses

numerous issues that could have direct impact on operations and

arrangements.

The IPPS proposed rule increases operating payments up to

4.1 percent from the prior year, due largely to a 3 percent

market basket update. Hospitals that fail to report on quality

measures will still face a 2 percent penalty. It is important

to note, however, that CMS has proposed the addition of 43 new

quality measures to the current list of 30 on which hospitals

must report.

Other significant changes to the Hospital Inpatient

Prospective Payment System proposed by CMS include:

Alternatives to the "stand in the shoes"

provisions contained in the Stark III rules

A corollary provision to the "stand in the

shoes" provisions related to designated health services

(DHS) entities

Clarification of the period of disallowance for DHS

entities

For more information on the proposed rule for the Hospital

Inpatient Prospective Payment System, please see the Waller

Lansden bulletin at this

link.

The Skilled Nursing Facility Prospective Payment System

proposed rule is highlighted by a recalibration of the case-mix

adjustment index that is projected to result in a net decrease

in...

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