Why Hospitals Are Condemning CMS’ Proposed Inpatient Payment Rule

The Centers for Medicare & Medicaid Services proposed a 2.6% increase in hospitals’ inpatient payment rates for fiscal year 2025, based on a projected hospital market basket update of 3%. However, hospital groups argue that this increase is inadequate, given ongoing inflation and rising costs. They believe the proposed payment boost will not be sufficient to address the challenges hospitals are facing, such as labor shortages and an aging patient population. They urge CMS to reconsider their policy to ensure hospitals can provide quality care. Comments on the proposed rule are being accepted until June 10.

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