Medicare and Medicaid Payment Cuts Reach a Tipping Point for Hospitals

Reductions in federal payments to hospitals will total $252.6 billion from 2010 through 2029, reflecting the impact of a series of legislative and regulatory actions, according to a new study from Dobson DaVanzo & Associates. The report showed that payment reductions mandated in 12 legislative acts and numerous regulatory changes from CMS negatively impacted federal payments for inpatient and outpatient acute care, freestanding inpatient rehabilitation, long-term care hospitals, inpatient psychiatric units, hospital-based rehabilitation, skilled nursing and home health.

In addition to Medicare spending cuts, hospitals also face declining service volumes, rising costs, and a shrinking payer mix as more baby boomers shift from commercial insurers to Medicare.

Click here to read a full analysis of the study from Healthcare Dive.