CMS Finalizes 3.1% Hospice Payment Update for 2024, But Industry Stakeholders Fear It Falls Short

The U.S. Centers for Medicare & Medicaid Services (CMS) has finalized a 3.1% increase in per diem payments for hospices in 2024, leading to a $780 million boost in payments compared to Fiscal Year 2023. The aggregate payment cap will rise to $33,494.01 from $32,486.92 in 2023. Initially proposed at 2.8%, the increase was raised after considering higher care delivery costs. However, stakeholders and providers expressed concern, urging higher reimbursement rates to offset inflation and wage pressures. The rule also imposes stricter quality reporting requirements, with annual payment reductions of 4 percentage points for non-compliant hospices.