AHA Says 3.1% Medicare Hospital Outpatient Payment Increase ‘Inadequate’

The American Hospital Association has criticized the “inadequate update” to outpatient hospital payments in the 2024 Medicare Hospital Outpatient Prospective Payment System and Ambulatory Surgical Center Payment System Final Rule.

Outpatient hospital payment is increasing by 3.1%, reflecting a market basket percentage increase of 3.3%, reduced by a 0.2 percentage point for the productivity adjustment, Healthcare Finance reports.

“The AHA is concerned that CMS has again finalized an inadequate update to hospital payments,” said Stacey Hughes, executive vice president of the  American Hospital Association. “Today’s increase for outpatient hospitals of only 3.1% comes in spite of persistent financial headwinds facing the field. Most hospitals across the country continue to operate on negative or very thin margins that make providing care and investing in their workforce very challenging day to day.”

The AHA is urging Congress for additional support by the end of the year, Hughes said. Read more.

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