CMS Finalizes 2017 Medicare Payment Rates: What Hospitals Need To Know

    View Author August 2016

    On August 2, 2016, CMS released its final rule to update the fiscal year (FY) 2017 Medicare payment rates under the Inpatient Prospective Payment System (IPPS) and the Long-Term Care Hospital Prospective Payment System (Final Rule). By law, CMS is required to update payment rates for IPPS hospitals annually, and to account for changes in the costs of goods and services used by these hospitals in treating Medicare patients, as well as other factors (Market Baskets). For 2017, inpatient hospital payment rates will increase by 0.95% for those hospitals that successfully participate in the Hospital Inpatient Quality Reporting Program and are meaningful electronic health record users.

    While the Final Rule consists of more than 2,000 pages, this publication is a summary of a few of the key points for hospitals to consider for FY 2017.