News: CMS releases FY 2018 IPPS proposed rule

CDI Strategies - Volume 11, Issue 17

CMS released the fiscal year (FY) 2018 IPPS proposed rule on Friday, April 14. The rule includes updates to quality initiatives and changes to the 2018 ICD-10-CM/PCS codes.

In addition, the proposal seeks to modify the electronic health record (EHR) reporting periods from the full year to a minimum of any continuous 90-day period during the 2017 calendar year for new and returning participants attesting to CMS or their state Medicaid agency, Revenue Cycle Advisor reported.

CMS also requested comments and proposals related to existing hospital-acquired conditions (HAC) reduction program policies such as:

  • Greater specification of the dates used to calculate hospital performance for the FY 2020 HAC reduction program
  • Additional measures for potential future adoption
  • Accounting for social risk factors
  • Accounting for disability and medical complexity in the Centers for Disease Control and Prevention’s National Healthcare Safety Network measures in Domain 2
  • Updates to the Extraordinary Circumstance Exception policy

The proposal would also change the requirement for updating diagnosis and procedure codes from a single update on October 1 to a biannual update. Through this update, CMS believes new technologies will be better recognized under the IPPS system at earlier dates. CMS did note in the rule, however, that the addition of new codes will not affect payments or DRG classification changes until the following FY, according to Revenue Cycle Advisor.

CMS also released the proposed list of ICD-10-CM/PCS code updates, revisions, and deletions, which can be reviewed on their website.

The proposed rule would increase the operating rates slightly for general acute-care hospitals paid under the IPPS. Those facilities, however, also need to successfully participate in the Hospital Inpatient Quality Reporting Program and use an EHR system.

While CMS also opened the door for comments and suggestions on the proposed rule, they stipulated that the comments would not necessarily prompt a response in the final rule. CMS will, however, consider the comments for future guidance and rulemaking. The comment period remains open through June 13.

For more information, review the CMS fact sheet on the FY 2018 proposed rule. CMS expects to issue the final rule by August 1. Once the rule is finalized, the changes become effective on October 1.  

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