Maryland Plan to Cap Hospital Revenue OK’d By CMS

According to a new all-payer model — which Maryland submitted to CMS for approval this past October — the state will limit its annual all-payer per capita total hospital cost growth to 3.58 percent, or the 10-year average growth rate of the state’s economy.

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Additionally, hospitals in the state will commit to achieving quality improvements, including an annual 6.89 percent reduction in the 65 most potentially preventable hospital-acquired conditions and a reduction in Medicare 30-day readmissions to the national rate.

The five-year initiative will replace Maryland’s 36-year-old Medicare waiver. Maryland has been the only state to set its own reimbursement rates for all payers, including Medicare and commercial insurers, on the condition the state hospitals’ Medicare inpatient payment per admission growth rate didn’t exceed the national average.

Read the full report on Becker’s Hospital Review.

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