CMS Issues Final Rule for Medicare Payment Policies

August 4, 2011

CMS Issues Final Rule for Medicare Payment Policies

On August 1, 2011, The Centers for Medicare & Medicaid Services (CMS) issued a final rule for fiscal year (FY) 2012 that will update Medicare Payment policies and rates. This rule, that will affect Medicare payments to general acute care hospitals and long-term care hospitals for inpatient stays, supports efforts to promote ongoing hospital care improvements that will lead to better patient care while addressing long-term health care cost growth.

The CMS final rule for (FY) 2012 updates payment policies and rates for acute care hospitals paid under the Inpatient Prospective Payment System (IPPS), as well as hospitals paid under the Long Term Care Hospital Prospective Payment System (LTCH PPS). The rule also helps strengthen the Hospital Impatient Quality Reporting (IQR) Program by putting emphasis on preventing health care-associated infections in general acute care hospitals, and creates a framework for a new quality reporting program.

The final rule will apply to about 3,400 acute care hospitals and 420 LTCHs and will be effective for discharges occurring on or after Oct. 1, 2011, unless otherwise stated. 

Formore information and to review the full text of the final rule, please click on the following: or