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CMS Issues FY 2015 IPPS Proposed Rule

The Centers for Medicare & Medicaid Services (CMS) issued the Inpatient Prospective Payment System (IPPS) proposed rule for fiscal year (FY) 2015. Under the proposed rule, IPPS rates would increase by 1.3 percent, which includes the documentation and coding cut mandated by the American Taxpayer Relief Act of 2012. The proposed rule also includes the Affordable Care Act (ACA)-mandated Medicare disproportionate share hospital (DSH) reductions, which reduce overall Medicare DSH payments by 1 percent in FY 2015 compared to FY 2014. CMS also updates the Hospital-Acquired Condition Reduction Program, Readmissions Reduction Program, Hospital Value-Based Purchasing Program, and Inpatient Quality Reporting Program.

In the coming days, America’s Essential Hospitals will release additional analysis on this proposed rule. If you have questions or concerns, please contact Xiaoyi Huang, director of policy, at or 202.585.0127. Although publicly available April 30, the rule will be published in the Federal Register May 15, Comments are due  June 30.


About the Author

Zina Gontscharow is a former senior policy analyst for America's Essential Hospitals.

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