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CMS Issues Final FY2014 Payment and Policy Changes for Acute and Long-Term Care Hospitals

Posted on 8/2/2013 by NTOCC ®

On Friday, August 2nd, the Centers for Medicare & Medicaid Services (CMS) issued the final rule for hospitals paid under the Inpatient Prospective Payment System (IPPS) and Long-Term Acute Care Hospital Prospective Payment System (LTCH PPS). Specifically, the rule increases hospital inpatient payments by 0.7 percent, long-term care hospitals will get an increase of 1.3 percent and hospice pay will increase 1.7 percent in fiscal 2014. In addition to setting payment rates for hospital inpatient services, the rule updates and lays out a framework for implementation of several programs aimed at improving quality of care including the new Hospital-Acquired Conditions Reduction Program, which would begin in 2015, the Hospital Value-Based Purchasing (VBP) program and Readmissions Reduction program.

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