[authors: Jeffrey R. Bates, Maria E. Gonzalez Knavel, Donald H. Romano]
On May 11, 2012, the Centers for Medicare and Medicaid Services (CMS) published in the Federal Register a proposed rule that would, among other things, update payment policies and rates for acute care hospitals paid under the Inpatient Prospective Payment System (IPPS) for fiscal year (FY) 2013. The proposed rule also would update payment policies and rates for long-term care hospitals paid under the Long-Term Care Hospital Prospective Payment System (LTCH PPS) for FY 2013. In its press release, CMS stated that the proposed rule is a continuation of its efforts to promote improvements in hospital care that lead to better patient outcomes while slowing growth rate of health care cost. CMS Acting Administrator Marilyn Tavenner stated that “[t]he proposed rule would implement key elements of the Affordable Care Act’s value-based purchasing program as well as the hospital readmissions reduction program. It also establishes the groundwork for extending Medicare’s quality reporting programs beyond general acute care hospitals to other types of facilities.”