Premier Inc. Statement on the Proposed IPPS Rule Last Updated: April 28, 2016
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By Blair Childs, Senior Vice President of Public Affairs, Premier

Although it took several comment cycles and a lawsuit for the agency to hear reason, members of the Premier alliance are extremely pleased that the Centers for Medicare & Medicaid Services (CMS) finally saw the light and proposed to terminate their flawed Two Midnight payment cut in the Inpatient Prospective Payment System (IPPS) rule. As we have stated in the past, CMS provided virtually no justification for these cuts that do little more than exacerbate the inadequate reimbursement reality facing hospitals under Medicare.

In comments, we will also be taking a close look at the rule’s proposed -1.5% adjustment to recover for documentation and coding. In the past, CMS indicated that they were on track to recover these funds. Yet this year, the reduction has almost doubled, with CMS maintaining it still has to recover more than $5 billion from hospitals. This high uptick seems dramatic and excessive, and we will be carefully reviewing CMS’s methodology for setting the adjustment to ensure there were no flaws in the calculation.

– Blair Childs, senior vice president of public affairs, Premier Inc.