Summary
The American Hospital Association (AHA) is unhappy with new payment changes announced by the Centers for Medicare and Medicaid Services (CMS). These updates will change Medicare payment policies, impacting thousands of hospitals and outpatient centers. The CMS argues these changes will improve care quality and save money, while the AHA believes they will worsen financial problems for hospitals.
Key Facts
- CMS updated Medicare payment policies and rates for hospital outpatients and Ambulatory Surgical Center (ASC) services starting in 2026.
- Hospitals that meet quality reporting requirements will see outpatient payment rates increase by 2.6%.
- The American Hospital Association opposed these changes, claiming they worsen financial pressures on hospitals.
- CMS states these updates will save $11 billion over ten years and impact about 4,000 hospitals and 6,000 ASCs.
- CMS plans to phase out the Inpatient Only List (IPO), affecting where patients can receive care, over the next three years.
- The policy changes aim to increase outpatient care access and transparency in hospital pricing.
- Rural sole community hospitals will not face certain payment reductions applied elsewhere.
- CMS also plans to continue its 340B recoupment policy, reducing some hospital payments annually starting in 2026.
