CMS proposes $1.6 billion increase to inpatient hospital pay for FY23

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The Centers for Medicare and Medicaid Services on Monday proposed bumping up inpatient hospital payments by approximately $1.6 billion in fiscal 2023.

The proposed Hospital Inpatient Prospective Payment System rule represents a 3.2% increase in fiscal 2023 payments from the year before.

CMS estimates Medicare disproportionate share hospital payments and Medicare uncompensated care payments will decrease by about $800 million next year. Long-term care hospitals could get a $25 million increase.

The agency also proposed adding three new health equity-focused measures to hospital quality reporting programs and officially suggested the “birthing friendly” hospital designation it announced last week.

Additionally, the rule suggested requiring hospitals and critical access hospitals to continue reporting COVID-19 and seasonal flu data after the end of the COVID-19 public health emergency and proposed new reporting requirements for future infectious disease emergencies.

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