The CMS will keep in place a 2.9% payment cut to hospitals for fiscal 2011 to offset overpayments.
The CMS will keep in place a 2.9% pay reduction to offset what it sees as overpayments made to hospitals under its new coding system, according to a final payment rule. Taking that and other payment changes into account, payments made to the 3,500 acute-care hospitals across the nation for fiscal 2011 beginning Oct. 1 will decline by 0.4%, or roughly $440 million, compared with fiscal 2010. The new reform law reduces payments by an expected 0.25%, but hospitals will receive a 2.6% inflationary increase. “America’s hospitals strongly disagree with the Centers for Medicare & Medicaid Services’ final inpatient rule,” Richard Umbdenstock, president and CEO of the American Hospital Association, said in a written statement. “The rule cuts billions of dollars from the healthcare system at a time when patients are sicker, more people are losing coverage due to the economic downturn and hospitals are dealing with significant changes contained in the health reform bill.”