AHA and Premier Voice Objection to CMS’ Proposed Inpatient Hospital Rate Cuts

CMS’ announced proposed fiscal 2010 payment rates that, if adopted, would result in a net one-half percent average cut to 3,5000 acute care hospitals and 400 long-term care hospitals, beginning Oct. 1, 2009, was not viewed fondly by the American Hospital Association and group purchasing organization Premier.

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Tom Nickels, AHA senior vice president for federal relations, says the AHA disagrees with CMS’ payment proposal.

“We’re extremely disappointed with the level of payment for 2010,” Mr. Nickels says. “The reductions go well beyond what is appropriate and fly in the face of data showing still-falling Medicare margins that are at an all-time low. Hospitals cannot sustain these additional cuts in an already exceptionally underfunded system.”

Blair Childs, senior vice president of Premier, says the GPO was upset by the proposed cuts.

“As the economy and credit markets decline, non-profit hospitals are struggling, and now is not the time to further reduce hospital payments, particularly when MedPAC (the Medicare Payment Advisory Commission) already acknowledges that hospital payments are nearly seven percent below cost,” Mr. Childs says.

CMS will accept comments until June 30.

Read the proposed CMS rate changes.

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