WASHINGTON Aug 4 The U.S. government said on
Monday that it will increase the operating payments that
acute-care and long-term care hospitals receive from Medicare
for inpatient care for the federal fiscal year that begins on
The Centers for Medicare and Medicaid Services (CMS)
announced a 1.4 percent rate update for 3,400 acute care
hospitals and a 1.1 percent rate update for 435 long-term care
hospitals for fiscal year 2015.
CMS also announced a market basket update of 2.9 percent but
said the rate could vary depending on whether a hospital
participates in government efforts to address quality care
issues and automates its information systems to accommodate
electronic health records. The market basket, a fixed index of
goods and services, reflects the influence of inflation and is
used to update payments and cost limits within Medicare.
Under a final rule released on Monday, CMS said the market
basket update would decrease by one-quarter among hospitals that
do not successfully participate in its quality reporting program
or use electronic health records in a meaningful way.
Overall, CMS projected that payments to acute-care hospitals
would decrease by $756 million, while payments to long-term
hospitals would rise by $62 million.
(Reporting by David Morgan; Editing by Lisa Shumaker)