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National Intelligence Report

Medicare Hikes Inpatient PPS Rates, Starts DRG Changes
August 14, 2006

Medicare payments to acute-care hospitals for operating expenses will rise 3.4% on average, or $3.4 billion, in fiscal year 2007, which begin this October 1, the Centers for Medicare & Medicaid Services has announced, The final 2007 inpatient PPS rule is scheduled to appear in the August 18 Federal Register. More than 1,000 rural hospitals will see a 3.7% average increase; urban hospitals less, 3.4%, CMS estimates. Cardiac specialty hospitals will see only a 1.2% increase as part of reduced incentives to select and provide only profitable services.

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