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Providers say inpatient rate adjustment for inflation not sufficient


erdikocak via Getty Images Providers remained largely unhappy early this week despite a final ruling issued by the CMS on Monday that increases inpatient payments to hospitals by more than was initially proposed .

Organizations like The American Hospital Association said it was “pleased” by the payment update , a 4.3% bump up from the proposed 3.2%, but added it “still falls short of what hospitals and health systems need to continue to overcome the many challenges that threaten their ability to care for patients and provide essential services for their communities.”

Group purchasing organization Premier agreed, saying the payment update “falls woefully short” of what is needed for health systems. “Coupled with record high inflation, this inadequate payment bump will only exacerbate the intense financial pressure on American hospitals,” SVP of Government Affairs Soumi Saha said in a statement.

The CMS stated that the payment rate in the final Inpatient Prospective Payment Rule takes into account “a revised outlook regarding the U.S. economy.”

Provider groups had previously asked for more adjustments, but the CMS declined to set aside its regulatory payment formula. Cowen analysts noted the continued pressure hospitals face and the fact that “commercial rate renegotiations take multiple years to cycle […]

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