Press Release

Statement on Proposed FY 2016 IPPS Rule

Rick Pollack

Executive Vice President
American Hospital Association


April 17, 2015


Today’s rule implements numerous congressionally-mandated policies and provisions in the context of the existing payment system.  These very modest increases will make it even more challenging for hospitals to deliver care patients and communities expect. 


At the same time America’s hospitals continue to be committed to moving toward alternative payment systems that increase value and promote coordination of care. 


Notably absent from today’s rule is a further discussion of the two-midnight policy and reform of the recovery audit contractor (RAC) program.  We also urge the agency to examine fundamental RAC reforms, including the contingency fee structure that encourages RACs to deny claims. 


Additionally, it appears CMS’s proposals to implement changes to long-term care hospital payments are in line with congressional intent.  These facilities fill a critical role by treating the sickest patients with extreme and major severity of illness than any other hospital or provider setting.


We will continue to analyze the proposed rule and work with CMS to make improvements to ensure patients have the care and access they need.




About the AHA

The AHA is a not-for-profit association of health care provider organizations and individuals that are committed to the health improvement of their communities. The AHA is the national advocate for its members, which include nearly 5,000 hospitals, health care systems, networks, other providers of care and 43,000 individual members. Founded in 1898, the AHA provides education for health care leaders and is a source of information on health care issues and trends. For more information, visit the AHA website at

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