FAH President and CEO Chip Kahn released the following statement after CMS issued the FY 2024 IPPS Proposed Rule:

“As the cost of groceries and gas continue to rise, so does the cost of caring for patients. Just as the ravages of record setting inflation are affecting every American family – community hospitals are being hit too. Hospitals aren’t immune to inflation. They are contending with rising labor costs combined with the growing challenges of a deepening caregiver shortage, drug price increases, and supply chain breakdowns, among other inflation challenges. All reasons why hospitals need more support from Medicare.

“This IPPS proposed inflationary payment update is disappointing. It fails to recognize today’s headwinds that will strain the health safety net in 2024, which will further threaten patients’ access to care as hospitals are forced to reduce services or in some cases, especially rural areas, close completely.”