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MedPAC Recommends Inpatient, Outpatient Payment Increases




This week in Washington—MedPAC recommends payment increase for hospital inpatient and outpatient services. You are tuning in to the National Association of Public Hospitals and Health Systems health policy update for the week of Jan. 14, 2013.

Last week, the Medicare Payment Advisory Commission (MedPAC) held a public meeting in which the commissioners unanimously voted to recommend that Congress increase payments for hospital inpatient and outpatient services by 1 percent for fiscal year (FY) 2014. The current statutory update calls for inpatient payments to increase by 1.8 percent and outpatient payments to increase by 2 percent for FY 2014. MedPAC recommends that the 0.8 percent difference between the inpatient statutory update and the recommended increase be used to offset increases in payment due to documentation and coding increases. For the outpatient payments, the current scheduled statutory update for the outpatient side is calculated by taking the market basket update and subtracting a productivity and budget adjustment, which results in a 2 percent update. However, MedPAC has recommended that Congress only increase the outpatient payments by 1 percent. MedPAC’s recommendation does not account for scheduled Affordable Care Act disproportionate share hospital (DSH) cuts or hospital payment cuts in the recently passed fiscal cliff legislation. MedPAC plans to present this recommendation to Congress in March.

Thanks for listening to another edition of This Week in Washington. I’m Zina Gontscharow; join us next week for another update.



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