FAH President and CEO Chip Kahn released the following statement after reviewing the FY 2025 Hospital IPPS Final Rule:

“We have consistently raised concerns that CMS hospital payment updates have failed to reflect inflation and the costs of hospital care that remain stubbornly high. Frankly, these inadequate payment updates and CMS’ real Medicare DSH cuts for the most vulnerable leave hospitals struggling to meet patient needs.

“To add insult to injury, today’s final rule makes this problem worse with an unnecessary CMMI TEAM demonstration that would impose a mandatory payment model on hundreds of hospitals across the country. This demonstration’s excessive burden on hospitals will reduce seniors’ access to elective services and force hospitals serving the country’s most vulnerable patients to take on additional financial risk.”

###