Medicare payments for inpatient care at acute-care hospitals will increase by 2.9% or roughly $2.9 billion in fiscal 2025.
The new rule, released in July by the CMS, also increases the standard Medicare payment rate to long-term care hospitals by 2%, or $45 million, for inpatient care.
Additionally, the rule requires long-term hospitals to report on the stability of patients' housing, food, and utility needs and their access to transportation. These social factors can affect the resources required for their care.
It also finalizes a separate payment to small independent hospitals to establish and maintain a buffer stock of essential medicines in case of drug shortages.
Long-term care hospitals provide care to beneficiaries who need hospital-level care for relatively extended periods of time. To qualify, they must have an average stay of more than 25 days for certain Medicare patients.
