Back to archive page
CHA News

CHA DataSuite Releases Analysis of Inpatient Prospective Payment System FFY 2020 Proposed Rule

For CFOs

CHA has provided member hospitals and health systems with hospital-specific CHA DataSuite analyses showing how Medicare inpatient fee-for-service (FFS) payments will change from federal fiscal year (FFY) 2019 to FFY 2020 based on the policies put forth in the Centers for Medicare & Medicaid Services’ (CMS) FFY 2020 inpatient prospective payment system (IPPS) proposed rule.

The analysis compares the year-over-year changes in operating, capital, and uncompensated care IPPS payments and includes breakout sections with detailed insight into specific policies that influence IPPS payment changes, including:

  • Potential payment penalties under the Inpatient Quality Reporting and Electronic Health Record Incentive programs
  • Impact of CMS’ proposal to adjust the wage index of hospitals in the top and bottom quartiles of wage index values nationally to reduce wage disparities
  • Disproportionate share hospital (DSH) uncompensated care (UCC) payments
  • CMS’ use of solely Medicare Cost Report Worksheet S-10 data for FFY 2020 UCC payments

This analysis does not include estimates for outlier payments; payments for services provided to Medicare Advantage patients, including indirect medical education payments; electronic health record incentive payments; or modifications in FFS payments as a result of hospital participation in new payment models being tested under Medicare demonstration/pilot programs.

Proposed rule changes modeled in the analysis include provider type changes, a market basket update, Affordable Care Act-mandated market basket reductions, coding adjustment reductions mandated by the Medicare Access and CHIP Reauthorization Act, wage index/geographic adjustment factor values, reducing wage index disparities, DSH-UCC payment changes, change in hospital-specific rates, MS-DRG updates, quality-based payment adjustments, and low-volume adjustment changes. More information is available in the attached analysis description. 

CHA invites members to register for a member forum, scheduled for June 11 from 10–11:30 a.m. (PT), that will provide an overview of the proposed rule and solicit input for CHA’s comment letter, due June 24. Registration is available online.