IRVING, Texas, June 10, 2024 – Vizient, Inc. today offered comments to the Centers for Medicare and Medicaid Services (CMS) on the Fiscal Year (FY) 2025 Inpatient Prospective Payment System (IPPS) Proposed Rule. In our comments, Vizient provided feedback on several proposals from CMS, including the payment rate update, drug shortage mitigation strategies, and a new mandatory payment model, among other areas critical to our providers.
Given the persistent economic pressures facing hospitals, and the ongoing underestimation of costs in previous market basket rates, Vizient urged CMS to substantially increase the market basket update which would ultimately increase payment rates for hospitals paid under IPPS.
"The market basket update provided by CMS fails to reflect the economic realities hospitals face today, especially with the rising costs of supplies, labor, and drugs, and diminishing cash reserves," said Shoshana Krilow, senior vice president of public policy and government relations for Vizient. "While we appreciate CMS's effort in updating payments, we remain concerned about the far-reaching impact on patient care due to inadequate hospital reimbursement."
Regarding CMS's proposal to establish separate payments to small, independent hospitals for maintaining a buffer stock of essential medicines, Vizient voiced general support and offered several recommendations. For example, Vizient recommended expanding the scope of medications included in the policy, broadening the policy to include more hospitals, and reducing the administrative burden on providers, among other suggestions.
Additionally, consistent with prior comments regarding mandatory payment models, Vizient expressed opposition to CMS's proposal for the mandatory Transforming Episode Accountability Model (TEAM), citing the disruptions and burdens it imposes on healthcare providers. Vizient recommended making participation voluntary to minimize potential negative impacts to hospitals.
As CMS finalizes the FY 2025 IPPS Proposed Rule, Vizient looks forward to collaborating with the agency to advance policies that enhance the stability and effectiveness of hospital operations and healthcare delivery.
About Vizient, Inc.
Vizient, Inc., the nation's largest provider-driven healthcare performance improvement company, serves more than 65% of the nation's acute care providers, which includes 97% of the nation's academic medical centers, and more than 35% of the non-acute market. Vizient provides expertise, analytics and consulting services, as well as a contract portfolio that represents $140 billion in annual purchasing volume. Solutions and services from Vizient improve the delivery of high-value care by aligning cost, quality and market performance. Headquartered in Irving, Texas, Vizient has offices throughout the United States. Learn more at www.vizientinc.com.