AHA Statement on 2023 OPPS Proposed Rule

Stacey Hughes
Executive Vice President
American Hospital Association

July 15, 2022

We are deeply concerned about CMS' proposed payment updated of only 2.7%, given the extraordinary inflationary environment and continued labor and supply cost pressures hospitals and health systems face. Hospitals and health systems - and their caregivers - have been on the front lines of the COVID-19 pandemic for over two years now. While we have made great progress in the fight against the virus, our members continue to face a range of challenges that threaten their ability to continue caring for patients and providing essential services for their communities. A much higher update is warranted, and we will be closely analyzing CMS' proposed market basket, as well as its proposed productivity offset.

The AHA appreciates that, following the favorable unanimous ruling in our 340B Supreme Court case, CMS will be ending its unlawful cuts to 340B hospitals in next year's Medicare outpatient payment. This will help 340B hospitals provide comprehensive health services to their patients and communities. Having now recognized what 340B hospitals are owed under the law, we urge the Administration to promptly reimburse those hospitals that were affected by these unlawful cuts in previous years. Additionally, we continue to urge the agency to ensure the remainder of the hospital field is not penalized for their prior unlawful policy, especially as hospitals and health systems continue to deal with rising cost for supplies, equipment, drugs and labor.

Finally, we look forward to reviewing the proposals for payments under the Rural Emergency Hospital (REH) model and further engaging with the agency to establish the new provider type. The REH model will help rural hospitals continue to serve as an access point to care in their communities, which is especially critical given the many challenges they have faced during the pandemic.


Contact:    Colin Milligan, cmilligan@aha.org
                  Sean Barry, sbarry@aha.org