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The AHA commented to the Centers for Medicare & Medicaid Services June 10 on the fiscal year 2026 inpatient prospective payment system proposed rule (/news/headline/2025-04-11-cms-issues-hospital-ipps-proposed-rule-fy-2026), expressing support for several provisions, including a proposed increase in disproportionate share hospital payments and several aspects of the agency’s quality-related proposals. However, the AHA said it was strongly concerned about proposed payment updates.

“The proposed net payment update of 2.4% is simply inadequate given the unrelenting financial headwinds faced by hospitals and health systems,” the AHA wrote. “We are particularly concerned with the inappropriately large productivity cut that is being proposed. We urge the agency to re-examine the magnitude of this adjustment and its impact on Medicare payments.”

The AHA was also concerned about CMS’ proposal to include Medicare Advantage patients in the Hospital Readmissions Reduction Program, saying that including MA patients in calculating readmissions penalties would effectively hold hospitals accountable for excessive and inappropriate coverage delays and denials on the part of MA plans.