The Centers for Medicare and Medicaid Services (CMS) will lift the rate it pays inpatient hospitals in 2016 by 0.9 percent, the agency announced last Friday, as long as facilities participate in the Hospital Inpatient Quality Reporting Program and demonstrate meaningful use through the use of electronic health records. According to Healthcare Finance, the new rate is a drop from the 1.1 percent hike proposed earlier this year. The change takes into account a 2.5 percent market basket adjustment minus 0.5 percent for productivity, 0.2 percent tied to the Affordable Care Act and 0.8 percent from the American Taxpayer Relief Act. The rule is aimed at reinforcing CMS’s plans to convert hospitals from a fee-for-service to a value-based reimbursement model. CMS has stated that hospitals that do not participate in the quality reporting program will see the market basket rate slashed by 25 percent and those that fail to show meaningful use will lose half of their market basket increase.
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