In late May, the Medicare Payment Advisory Commission (MedPAC) issued comment letters in response to multiple CMS payment proposals in which MedPAC encouraged refinements to the hospital star rating system to emphasize patient outcomes and opposed payment increases to Skilled Nursing Facilities (SNFs), hospices and Inpatient Rehabilitation Facilities (IRFs).

With respect to the Inpatient Prospective Payment System (IPPS) Proposed Rule for Fiscal Year 2017, among other things, MedPAC provided comments regarding CMS’s star rating program whereby hospitals will be given overall star ratings.  In the comment letter, MedPAC emphasizes that the star rating system should highlight patient outcomes rather than process measures. MedPAC also suggests that CMS could move towards using all-condition measures, rather than measuring cost and outcomes for specific conditions. Further, MedPAC explains that such an approach is consistent with its proposal that CMS use readmission quality measures that focus on all conditions.  MedPAC’s IPPS comment letter is available here.

MedPAC also provided comments on the CMS Proposed Rule on SNF Payment, stating, among other things, that CMS should not increase reimbursement to SNFs.  Instead, MedPAC believes that Medicare’s current level of payments remains appropriate.  Similarly, in its comment letter on hospices and IRFs, MedPAC also encourages CMS not to increase payments at this time. 

MedPAC’s SNF comment letter is available here.  MedPAC’s hospice comment letter is available here and the IRF letter is available here. 

Reporter, Lauren S. Gennett, Atlanta, + 1 404 572 3592, lgennett@kslaw.com.