CMS Issues Multiple Final Rules
Staff Contacts: Sarah Willson, Jim Mikes or Andrew Wheeler
The Centers for Medicare & Medicaid Services has issued the following final rules.
The final rule outlines fiscal year 2017 Medicare payment rates, wage index and the Hospice Quality Reporting Program for hospices serving Medicare beneficiaries. As finalized, hospices would see a 2.1 percent increase in payments for FY 2017, reflecting an estimated 2.7 percent inpatient hospital marketbasket update, reduced by a 0.3 percent productivity adjustment and a 0.3 percent adjustment required by law. The changes represent a total increase of approximately $350 million. New quality measures and reporting requirements that impact payment also were updated. MHA has published an issue brief with additional details.
Skilled Nursing Facilities
The final rule outlines FY 2017 Medicare payment policies and rates for the skilled nursing facility prospective payment system, and quality and value-based purchasing programs. CMS projects that aggregate payments to SNFs will increase in FY 2017 by $920 million, or 2.4 percent, from payments in FY 2016. Additionally, quality measures were refined to enhance the intent of the Improving Medicare Post-Acute Care Transformation Act of 2014, which added Section 1899B to the Social Security Act. MHA has published an issue brief with additional details.
Inpatient Rehabilitation Facilities
The final rule outlines FY 2017 Medicare payment policies and rates for the inpatient rehabilitation facility PPS and IRF Quality Reporting Program. CMS is updating IRF PPS payments for FY 2017 to reflect an estimated 1.65 percent increase factor, reflecting an IRF-specific marketbasket estimate of 2.7 percent, reduced by a 0.3 percentage point multifactor productivity adjustment and a 0.75 percentage point reduction required by law. The final rule adopts three measures to meet the resource use and other measure domains, and one measure to satisfy the domain of medication reconciliation. MHA has published an issue brief with additional details.
Inpatient Psychiatric Facilities
CMS has issued a notice updating FY 2017 Medicare payment policies and rates for the inpatient psychiatric facilities PPS. CMS estimates IPF payments to increase by 2.2 percent or $100 million in FY 2017.
The policies in the final rules continue to shift Medicare payments from volume to value. The administration has set measurable goals and a timeline to move the Medicare program, and the health care system at large, toward paying providers based on the quality, rather than the quantity, of care they provide.
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Organizations Release eCQM Survey Results
Staff Contacts: Sarah Willson or Dana Dahl
The Joint Commission, the American Hospital Association and the Federation of American Hospitals sent out a survey to 886 hospitals in March asking for feedback on electronic clinical quality measures. The eCQMs, which deal with data from electronic health records and the health information technology system, are set for release on Feb. 28, 2017. As of July 2016, 319 hospitals have responded, and TJC’s Pioneers in Quality Program is using the results to determine the best way to help facilities comply with eCQMs. TJC plans to follow up with a second survey this fall.
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