American College Of Surgeons - Inspiring Quality: Highest Standards, Better Outcomes

CMS Releases FY 2018 IPPS Proposed Rule

The Centers for Medicare & Medicaid Services (CMS) released its fiscal year (FY) 2018 Inpatient Prospective Payment System (IPPS) proposed rule April 14. CMS proposes to increase operating payment rates by 1.6 percent for general acute care hospitals that are paid under the IPPS rule, if they successfully participate in the Hospital Inpatient Quality Reporting Program and engage in meaningful use of electronic health records (EHR). Other proposed payment adjustments include continued penalties for excessive hospital readmissions, a continued 1 percent penalty for hospitals in the lowest-performing quartile under the Hospital-Acquired Condition Reduction Program, and continued upward and downward adjustments under the Hospital Value-Based Purchasing Program.

CMS also proposes modifications to the previously finalized clinical quality measures (CQMs) reporting requirements under the EHR Incentive Program. The proposed changes would require that eligible hospitals submit at least six CQMs from two self-selected calendar year quarters in 2017 and from the first three calendar-year quarters in 2018. In addition, the proposed rule comprises new policies that would eliminate payment adjustments for clinicians who furnish all of their services in an ambulatory surgery center, and for eligible hospitals that demonstrate that compliance with meaningful use of EHR is not possible under the Office of the National Coordinator for Health Information Technology’s Health IT Certification Program.  

The American College of Surgeons is evaluating these and other proposals to determine the impact on surgery and will submit comments to CMS. The proposed rule is available for public review, along with a fact sheet on its payment and quality aspects. For more information, contact

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