CMS Proposes Medicare Pay Increases For Hospitals

Modern Healthcare (4/11, Early, Subscription Publication) reported CMS published a proposed rule Friday indicating “Medicare reimbursements for inpatient hospital care would increase 2.4% in fiscal 2026.” Going forward, “long-term care hospitals would get a 2.6% pay hike under the same draft regulation. A separate rule issued Friday calls for a 2.4% boost to inpatient psychiatric facility rates next fiscal year, which begins Oct. 1.” The proposed update “reflects a 3.2% increase in the market basket used to calculate rates, minus a productivity adjustment.” In a news release, the Federation of American Hospitals criticized the reimbursement increase as insufficient. Meanwhile, CMS is seeking industry input “on how it could improve digital quality measurement as the sector transitions to electronic clinical quality measures.”