Payments to all hospitals will increase by an estimated average of 3.5 percent for FY 2008 when all provisions of the rule are taken into account, primarily as a result of the 3.3 percent market basket increase. Payments to specific hospitals may increase more or less than this amount depending on the patients they serve.

In the previous two years, Medicare made important, incremental changes while it studied comprehensive reform of the inpatient hospital payment system.  CMS is making some initial changes this year and is further studying how to better recognize the cost of expensive devices as it considers other improvements to its payments for FY 2009.

CMS Announces Payment Reforms For Inpatient Hospital Services In 2008, USA

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