Why Hospitals Are Decrying CMS’ New Inpatient Payment Rule

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The Centers for Medicare & Medicaid Services issued a final rule for next year’s Medicare inpatient payment rate, with hospitals in the Hospital Inpatient Quality Reporting program and meaningful EHR users receiving a 2.9% increase for fiscal year 2025. The rule also includes a 3.4% increase to the market basket reduced by a 0.5% productivity adjustment. Long-term care hospitals will see a 3% payment boost. Industry groups argue that the increase is insufficient and will impact hospitals’ financial stability, with concerns raised about patient access to care in rural and underserved communities. Premier’s senior vice president called for a deeper look into hospitals’ financial pressures to calculate more accurate payment rates.

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