CMS has published a notice with comment period describing its rationale for reducing Medicare inpatient prospective payment systems (IPPS) rates by 0.2% in FY 2014 to offset a projected $220 million increase in IPPS spending as a result of adoption of CMS's "2-midnight" admission policy. The December 1, 2015 notice was issued in response to a court order in Shands Jacksonville Medical Center, Inc., et al. v. Burwell, No. 14-263 (D.D.C.) and consolidated cases challenging both the basis for the 0.2% reduction and the procedures CMS followed in promulgating the cut. CMS invites comments "in order to facilitate CMS's further consideration of the FY 2014 reduction"; comments will be accepted until February 2, 2016. CMS intends to respond to comments in a final notice to be published by March 18, 2016.
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