Medicare cuts in the FY08 inpatient prospective payment system proposed rule “would weaken hospitals’ ability to provide needed services,” says a letter to Centers for Medicare and Medicaid Services Acting Administrator Leslie V. Norwalk from the American Hospital Association and five other national hospital groups.
The groups highlight two aspects of the proposed rule for criticism. The first is a 2.4% cut for coding changes that CMS expects to occur because of modifying DRGs to better reflect patients’ severity of illness. The letter says there are “no relevant data or experiences to support a prospective…cut.” The second aspect of the rule the groups object to is eliminating the annual update for capital payments to hospitals in urban areas.
The letter was signed by leaders of the AHA, the Association of American Medical Colleges, the Federation of American Hospitals, the National Association of Public Hospitals and Health Systems, Premier, Inc., and VHA Inc.
On May 8, HFMA holds an audio webcast to prepare members for the dramatic changes to the DRG system in the proposed rule. Click here to register.
