CMS pitches payment rules for 2022: 21 notes for hospital execs

Alia Paavola - Friday, July 9th, 2021

CMS has released its annual proposed payment updates for inpatient facilities, kidney care facilities, home health, skilled nursing facilities, hospices, inpatient psychiatric facilities and inpatient rehabilitation facilities.

Inpatient facilities

1. On April 27, CMS proposed a payment rate adjustment for inpatient facilities. Acute care hospitals that report quality data and are meaningful users of EHRs will see a net 2.8 percent increase in Medicare rates in fiscal year 2022, compared to 2021.

2. CMS said the payment rate adjustment will mean hospitals see an increase of about $3.4 billion in payments for hospitals in fiscal year 2022. 

3. CMS also proposed repealing the requirement to report median payer-specific negotiated rates by Medicare severity-diagnosis related group, with Medicare Advantage insurers. CMS said this will reduce administrative burden on hospitals by about 64,000 hours. 

Read more about the inpatient facility proposed payment rule here. 

Inpatient psychiatric facilities

1. On April 7, CMS proposed increasing IPF payment rates 2.3 percent over this year in fiscal year 2022.  

2. CMS estimates the rate boost would increase total payments to the facilities by about $90 million.

3. CMS also plans to update a policy to ensure that medical residents won't be displaced if their teaching hospital or program closes, preventing them from getting board-certified. This change would align the inpatient psychiatric facility teaching policy with changes finalized in the fiscal year 2021 Inpatient Prospective Payment System rule.

Read more about the inpatient psychiatric facility proposed payment rule here. 

Inpatient rehabilitation facilities

1. On April 7, CMS proposed increasing IRF payment rates by 2.2 percent in fiscal year 2022. 

2. CMS estimates this rate increase would increase total payments to the rehab facilities by $160 million.

3. CMS proposed adopting one new measure and updating the specifications for another measure used for the Inpatient Rehabilitation Facility Quality Reporting Program, a pay-for-reporting program.

Read more about the inpatient rehabilitation facilities proposed payment rule here.