The Medicare Payment Advisory Commission (MedPAC) today released its annual March Report advising Congress on the Medicare fee-for-service (FFS) payment systems. In it, the commission recommended its highest ever Medicare payment update for hospitals and health systems, recognizing the dire financial environment they continue to operate in. The AHA appreciates MedPAC’s recommendation to attempt to improve — in small part — Medicare’s chronic underpayments to hospitals and health systems. Specifically, the report found that all-payer operating and overall Medicare margins both fell to record lows. And, as indicated by MedPAC’s margin predictions for FY 2024, hospitals and health systems continue to weather significant financial challenges.

Source: Washington Post March 15, 2024 19:36 UTC