Current Report Articles
CMS Releases FY 2021 Medicare Acute Inpatient and LTCH Final Rule

Medicare (Sept. 4, 2020) – The Centers for Medicare & Medicaid Services released the final fiscal year 2021 payment and policy updates for the Medicare inpatient and long-term care hospital prospective payment systems. CMS is estimating that IPPS hospitals will receive a payment increase of $3.5 billion or 2.7 percent and LTCHs will receive an increase of 1.1 percent or $40 million. Major provisions of the rule include the following:

  • Decreasing the uncompensated care pool by $60 million
  • Cost report revisions to include market-based MS-DRG median payer-specific negotiated charges for Medicare Advantage organizations
  • Changes to program performance dates within the pay-for-performance programs
  • New MS-DRGs for CAR T-cell therapies

KHA will provide a payment rule summary and a hospital-specific impact analysis of the final rule in the upcoming weeks.
--Tish Hollingsworth