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  • Washington Highlights

    AAMC Comments on FY25 Inpatient Prospective Payment System Proposed Rule


    Shahid Zaman, Director, Hospital Payment Policy
    For Media Inquiries

    The AAMC submitted June 10 comments in response to the Centers for Medicare & Medicaid Services (CMS) fiscal year (FY) 2025 Inpatient Prospective Payment System (IPPS) proposed rule [refer to Washington Highlights, April 12].  

    Among the comments provided to the agency, the AAMC asked for an increase to the market basket update to account for increased labor and supply costs and urged the CMS to update its calculation of the outlier threshold for high-cost cases. Comments also touched on disproportionate share hospital and uncompensated care payments, low wage index policy, and drug shortages. In response to two requests for information (RFIs), the AAMC included several recommendations related to maternal health, including advising the CMS to not utilize Medicare Conditions of Participation requirements for obstetrical services to improve maternal health outcomes.  

    The AAMC also commented on a distribution proposal for the 200 graduate medical education (GME) positions created under Section 4122 of the Consolidated Appropriations Act, 2023 (P.L. 117-328), asking the CMS to not prioritize awards of positions based on Health Professional Shortage Area scores. Additionally, the comments encouraged the agency to consider a residency program “new” based on a determination from the accrediting body.   

    Regarding hospital quality programs, the AAMC urged the agency to ensure that new measures are endorsed by a consensus-based entity as valid and reliable and meet the needs of patients, families, and communities to inform their decisions of where to seek high-quality care. 

    The AAMC also provided detailed comments on the proposed Transforming Episodic Accountability Model [refer to related story]