Hospitals to See Big Changes in Reimbursement

In 2020 and 2021

By Health Capital Consultants, LLC


Hospitals are likely to see some significant changes in the way that Medicare reimburses for inpatient services in the next couple of years, according to the calendar year (CY) 2020.
The  Inpatient Prospective Payment System (IPPS) final rule that was published on August 16, 2019, and the announcement by the Centers for Medicare & Medicaid Services (CMS) on August 19, 2019, said that it would change the quality “star ratings” system on Hospital Compare, beginning in 2021.
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  1. 5 National Hospital Volume Observations: March 2020 vs. March 2019

    1. The median occupancy rate was 53% in March 2020 compared to 65% in March 2019
    2. Adjusted discharges fell 13.0%
    3. Adjusted patient days fell 15.1%
    4. Emergency department visits dropped 15.4%
    5. Operating room minutes fell 19.2%

    Source: []KaufmanHall, April 2020


  2. Hospital Patient Volume Declined 56% Between March 1 and April 15

    Crowe recently released a benchmarking analysis of hospital volumes for March and April. Here are some key findings from the report:

    • Average hospital patient volume declined 56% between March 1 & April 15 of this year.
    • For hospitals with 100+ beds, that represents a net revenue decline of $1.44 billion/day.
    • Inpatient admissions are running more than 30% below norms (compared January 2020).
    • ER visits, observation services, and outpatient surgeries are down 40%, 47%, and 71%.

    Source: Crowe, May 2020


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