CHA DataSuite has provided member hospitals and health systems with a hospital-specific analysis showing how Medicare inpatient fee-for-service payments will change from federal fiscal year (FFY) 2017 to FFY 2018 based on the policies in the Centers for Medicare & Medicaid Services’ (CMS) FFY 2018 inpatient prospective payment system (IPPS) final rule. The analysis compares the year-over-year changes in operating, capital and uncompensated care IPPS payments. It also includes breakout sections with detailed insight into specific policies that influence IPPS payment changes, including:
- Potential penalties under the Inpatient Quality Reporting and Electronic Health Record Incentive programs
- Expiration of the Medicare Dependent Hospital and expanded Low-Volume Hospital Adjustment programs
- Quality-based payment adjustments
- Disproportionate share hospital (DSH) uncompensated care (UCC) payments
- CMS’ transition to the Medicare Cost Report Worksheet S-10 for UCC payments for FFY 2018
Dollar impacts in this analysis may differ from those provided by other organizations due to differences in source data and analytic methods.
Final rule changes modeled in the analysis include provider type changes, a market basket update, Affordable Care Act-mandated market basket reductions, American Taxpayer Relief Act-mandated coding adjustment reduction, two-midnight rule adjustment, wage index/geographic adjustment factor, DSH-UCC payment changes, change in hospital-specific rates, MS-DRG updates, quality-based payment adjustments and low-volume adjustment changes. The full analysis description is attached.