The Centers for Medicare & Medicaid Services finalized a new provider designation for rural hospitals,  “Rural Emergency Hospitals,” in its Outpatient Prospective Payment System rule on Tuesday, November 1. Effective January 1, 2023, this new designation will allow certain eligible rural hospitals and Critical Access Hospital to receive a 5% payment increase for their services.  This new designation is meant to increase payments to rural hospitals to avoid potential closures and provide essential services to their communities. However, under this new designation, the hospitals cannot provide acute inpatient care.

The full text of the final rule is available here: https://www.cms.gov/files/document/cy2023-hospital-outpatient-prospective-payment-system-and-ambulatory-surgical-center-final-rule.pdf

Written by Catherine B. Moore.