Press Release

Statement on Final FY 2016 IPPS/LTCH Rule


Ashley Thompson

Vice President and Deputy Director, Policy

American Hospital Association


July 31, 2015


America’s hospitals are dismayed that in today’s rule the Centers for Medicare & Medicaid Services’ (CMS) decided not to include an extension of the partial enforcement delay of the two-midnight policy, which expires Sept. 30. Hospitals need this delay because CMS’s currently proposed changes to the two-midnight policy would not take effect until Jan. 1. We urge CMS to issue an extension of the delay quickly.


Today’s rule also implements major changes that will affect long-term care hospitals (LTCH) caring for our nation’s most severely ill patients. That’s why we are pleased that, at AHA’s urging, CMS dropped its proposal to use inpatient discharge status codes to determine payment, which would have resulted in underpayments for the care of these patients. At a time when LTCHs are seeing payment reductions for one out of every two patients, abandoning the use of discharge status codes is appreciated by these hospitals who are navigating new and choppy waters. Lastly, we continue to be concerned about the way in which CMS implemented the outlier policy and are evaluating it further.





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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