Hospitals Must Participate in Quality Reporting Programs or Risk CMS Cutting Payments

The Center for Medicare and Medicaid Services (“CMS”) will soon lift the rate it pays inpatient hospitals in 2016 by 0.9 percent, as long as the facilities participate in the Hospital Inpatient Quality Reporting Program and demonstrate meaningful use through electronic health records.

This payment increase will affect 3,400 acute care hospitals across the country. The rule is part of CMS’s broader plan to modify the way it pays hospitals from a fee-for-service to a value-based reimbursement model.

Hospitals that do not participate in the Quality Reporting Program will see their market basket rate cut by 25 percent, while those that fail to show meaningful use will have their market basket rates diminished by half.

The text of the Final Rule can be found here.