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CMS Issues Proposed FY2013 Payment and Policy Changes for Acute and Long-Term Care Hospitals

Posted on 4/25/2012 by NTOCC ® in Public Policy Updates

Yesterday, April 24, 2012, CMS issued the much anticipated annual proposed payment changes for inpatient stays in acute care and long-term care hospitals (LTCH) for fiscal year (FY) 2013. The rule projects that total Medicare spending on inpatient hospital services will increase by approximately $175 million and LTCH’s will increase by $100 million in FY2013.

In addition to providing updates to payment rates, the proposed rule provides several updates and changes to a number of programs, including the Hospital Inpatient Quality Reporting (IQR) program, the Hospital Readmissions Reduction Program, and the Hospital Value Based-Payment System.

Of particular interest to NTOCC are the changes proposed to the Hospital IQR program, which requires hospitals to submit data on 72 quality measures. The proposed rule would reduce the required number of measures to 59 for FY2015 payments, and 60 measures for FY2016 payments. Although the proposed rule will eliminate some measures, the rule also calls for the addition of the NQF endorsed “3-Item Care Transition Measure” to the Hospital Consumer Assessment Providers and Systems (HCAHPS) survey. This measure would be added to survey for January 2013 discharges. As many of you know, this measure was developed by the University of Colorado Health Sciences Center. Detailed information on the measure can be found here.

CMS will accept comments on the proposed rule until June 25, 2012, and will respond to all comments in a final rule to be issued by August 1, 2012.

Please find attached fact sheets from CMS on the proposed rule. The proposed rule in the Federal Register can be downloaded here.