House Members Call On CMS To Change Hospital Payment Reductions

The letter also noted that the Medicare Payment Advisory Commission has projected a negative 5.9% overall Medicare margin for hospitals in fiscal 2010—and recommended a full inflation or marketbasket update for hospital payments in fiscal 2011. These costs include wages and benefits (about 70% of hospital costs), medical supplies, pharmaceuticals, medical devices, food, and utilities.

The cut proposed by CMS for fiscal 2011 would weaken hospitals' ability to provide high quality services to patients and their communities, the letter concluded.