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The Medicare Payment Advisory Commission today recommended that Congress provide a 2% market-basket update for the hospital inpatient and outpatient prospective payment systems in fiscal year 2022.

The commission also recommended using the difference between the update and amount specified in current law to increase hospital payments through its proposed Hospital Value Incentive Program, which would replace the four current hospital quality payment programs with a single alternative program. 

AHA this week said it supports the concept of appropriately linking quality performance to payment, but continues to have significant concerns with the design of the program.

In other action, MedPAC recommended that:

• Congress increase 2022 payment rates for long-term care hospitals by 2%;
• Congress reduce 2022 payment rates for both home health agencies and inpatient rehabilitation facilities by 5%; Congress eliminate the update for skilled nursing facilities;
• Congress increase the calendar year 2022 Medicare payment rates for physician and other health professional services by the amount specified in current law;
• Congress eliminate the CY 2022 update to the Medicare conversion factor for ambulatory surgical centers, and the Department of Health and Human Services require ASCs to report cost data; and
• Congress eliminate the FY 2022 update to Medicare base payment rates for hospice providers.