AHA says CMS’ proposed FY 2025 LTCH payment updates not enough

The AHA submitted a letter to the Centers for Medicare & Medicaid Services June 7, commenting on the fiscal year 2025 proposed rule for the long-term care hospital prospective payment system. The AHA expressed concerns about CMS’ payment updates, which includes an inadequate proposed market basket update as well as a harmful proposed update to high-cost outlier payments. AHA argued that these updates risk jeopardizing care access to some Medicare beneficiaries and lag inflation. 
  
“These escalating costs for essential clinicians, personnel, drugs, supplies, and other items and services have put a strain on the entire health care continuum,” AHA wrote. “In all, Kaufman Hall found that total expenses have risen by 18% for hospitals compared to 2021. This is felt keenly by LTCHs, who care for the highest acuity patients with unique needs.”  

The AHA submitted separate comments on the rule’s inpatient PPS and Transforming Episode Accountability Model proposals.