The IPPS proposal calls for greater price transparency from hospital providers.
Hospitals will be required next year to publish their standard list of prices online in a machine-readable format, if the Centers for Medicare & Medicaid Services finalizes a proposed rule announced Tuesday afternoon.
The requirement, which aims to unleash competitive market forces in the healthcare sector by making pricing data more readily available to consumers, is among a list of changes proposed to the Inpatient Prospective Payment System (IPPS) and the Long-Term Care Hospital (LTCH) Prospective Payment System (PPS) for 2019.
"This payment proposal takes important steps toward a Medicare system that puts patients in charge of their care and allows them to receive the quality and price information needed to drive competition and increase value," Health and Human Services Secretary Alex Azar said in a statement Tuesday.
CMS Administrator Seema Verma said the proposal demonstrates the government's commitment both to high-quality care for patients and reduced regulatory burden for providers.
"We envision a system that rewards value over volume and where patients reap the benefits through more choices and better health outcomes," Verma said in a statement.
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.