Medicare Payments to Hospitals to Rise 2%

The government has announced that it will boost Medicare payments to hospitals by 2%. The increase, for the fiscal year beginning Oct. 1, applies to the nation’s 5,200 acute-care hospitals that participate in the Medicare program. For an additional 2,000 hospitals that don’t provide such care, the increase will be 1.5% to 2.5%.

“Several factors are adding to the increase in overall hospital payments under Medicare . . . including more Medicare beneficiaries and hospital admissions, and an increase in the severity of illness of patients treated in hospitals,” said Bruce C. Vladeck, who oversees the Health Care Finance Administration.