CMS finalizes cut to hospital reimbursement

Editor's Note

The Centers for Medicare and Medicaid Services (CMS) on August 2 released its inpatient prospective payment system (PPS) final rule for FY 2017.

In the rule, CMS kept a controversial 1.5% cut to hospital reimbursement, which aims to collect $11 billion in overpayments, the August 2 Modern Healthcare reports.

Hospitals had rallied against the move and expected the cut to remain at 0.8%, as it has been since 2014, when Congress mandated that CMS recover funds allegedly lost as a result of incorrect coding.

In a final rule released Tuesday, the CMS said it will keep a controversial 1.5% cut to hospital reimbursement. Industry stakeholders had pushed against the cuts which aim to recoup a total of $11 billion in alleged overpayments.