Drawing swift and vigorous criticism, the Centers for Medicare & Medicaid Services published its FY 2008 hospital inpatient PPS proposed rule on April 13, 2007. The AHA expressed reservations almost immediately and followed up with an April 27 release that claims the proposed rule would result in payment cuts of $25 billion to hospitals over the next five years. Other industry groups joined the AHA in a letter on May 3 strongly urging CMS to reconsider certain provisions of the proposed rule. Read more about key provisions of the proposed rule.

Also read about:

• What the New DRGs Could Mean to You
• FY 2008 Proposed Rule – By the Numbers
• Rules for Inpatient Psych and Rehab also Published
• Wage Index – Big Changes on the Way?

The New DRGs—What's a Hospital To Do?

CMS believes that accounting more appropriately for severity of illness may improve the effectiveness of the IPPS. Hospitals without a comprehensive strategy to address this situation can find themselves with operational bottlenecks and questionable outcomes. Hospitals need to take action.

Contact us if you would like further information or have feedback. Please feel free to forward this email to interested colleagues.