On June 9, WSHA submitted comments on the Centers for Medicare and Medicaid Services’ (CMS) proposed inpatient prospective payment system (PPS) and long-term care hospital (LTCH) PPS proposed rule for fiscal year (FY) 2024. The proposed rule included a net 2.8% rate increase for inpatient PPS payments in FY 2024 reflecting a hospital market basket increase of 3.0% as well as a productivity cut of 0.2%. WSHA commented that the update is far short of increases to the cost of providing care and requested CMS use its authority to adjust the marketbasket and productivity factor to better reflect the increased costs for labor, supplies and drugs hospitals are experiencing.
WSHA is also working with government affairs and finance staff at member hospitals to prepare comments on CMS’ Medicaid Access and Payment Managed Care Proposed Rule, with comments due July 3. The proposed rule would provide specific requirements for state directed payment programs, including the program for Washington hospitals passed during the 2023 legislative session scheduled to begin January 1, 2024. The proposed changes are not expected to affect initial implementation of our state’s program, but if finalized some provisions could require downstream changes as the program is renewed. The proposed rule also includes provisions requiring states to provide greater transparency and monitoring of Medicaid payment and access. (Andrew Busz, firstname.lastname@example.org)