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CMS Proposes Payment Reforms for Inpatient Hospital Services in 2008

by Barbara Kram, Editor | April 17, 2007

The proposed rule would continue to phase in a change introduced in FY 2007 which would better align payment with the costs of care by using estimated hospital costs, rather than list charges, to establish relative weights for the DRGs. Under the proposed rule, hospitals would be paid during 2008 based on a blend of one-third list charge-based weights and two-thirds hospital cost-based weights for the DRGs. In 2009, hospitals would be paid 100 percent based on cost-based DRG weights.

Comments on the proposed rule will be accepted until June 12, 2007 and a final rule, to be effective for discharges on or after October 1, 2007, will be published later in the summer.

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For more information, see: www.cms.hhs.gov/AcuteInpatientPPS/IPPS/list.asp#TopOfPage.



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