CMS on Wednesday issued three final payment rules for fiscal year (FY) 2023, in today's bite-sized hospital and health industry news from Kentucky, Maryland, and Minnesota.
- Kentucky: Humana on Wednesday announced that it will restructure its operations in 2023 to increase enrollment and expand its offerings to payers. Under the company's new structure, the organization will be divided into two units—called Insurance Services and CenterWell. According to Humana CEO Bruce Broussard, the reorganization is part of the company's $1 billion "value-creation plan," a cost-saving strategy the company debuted in February. The company plans to complete its search for a president to lead its insurance division by the end of 2022. "A key focus of this role will be to continue to simplify our structure to be more agile," Broussard said. (Tepper, Modern Healthcare, 7/27; Liss, Healthcare Dive, 7/27)
- Maryland: CMS on Wednesday finalized three final payment rules for FY 2023, with several updates to the proposed rules issued in March. Under the Inpatient Rehabilitation Facility Prospective Payment System final rule, the Medicare payment rate for inpatient rehabilitation facilities will increase by 3.9% in FY 2023—a move the agency estimates will increase total payments by $275 million. In addition, CMS finalized a rule to update hospice payment rates with a 3.8% net increase to payments, which includes a 4.1% market basket update, a 0.3 percentage point cut for productivity, and an annual payment cap of $32,486.92 per patient. The agency also finalized a 2.5% increase for the Inpatient Psychiatric Facility Prospective Payment System. (Cass, Becker's Hospital Review, 7/27; CMS fact sheet, 7/27 ; AHA News, 7/27 ; CMS fact sheet, 7/27 ; AHA News, 7/27 ; CMS fact sheet, 7/27 ; AHA News, 7/27 )
- Minnesota: 3M on Tuesday announced plans to turn its health care business into a separate company by the end of 2023. "The New 3M will remain a leading global material science innovator serving customers across a range of industrial and consumer end markets," the company said in a statement, "and Health Care will be a leading global diversified healthcare technology company focused on wound care, healthcare IT, oral care, and biopharma filtration." According to the company, the split will allow each stand-alone company "to better position for long term success." (Stebbins, CNBC, 7/26; MDDI Qmed, 7/28; Beene/Larkin, Bloomberg, 7/26; CBS Minnesota, 7/26; Musto, Fox Business, 7/26; Deka/Ganapavaram, Reuters, 7/26)