November 8, 2024

CMS has finalized new health and safety requirements for hospitals and CAHs providing obstetrical services, which set baseline standards for the organization, staffing, and delivery of care within obstetrical units, update the quality assessment and performance improvement (QAPI) program, and require staff training on evidence-based maternal health practices.

The final rule also codifies and builds on guidance to continue the ability to use rebates from drug manufacturers to strengthen Medicare.

The Department of Health Services claims that the authority to not renew the Medicaid contract is independent of the new law that stops for-profit HMOs from managing care in a number of public health insurance programs in the state.

It is known that directed payments increase payment to providers, but this incentivizes more providers to participate in Medicaid, which generally pays lower rates than other programs like Medicare and commercial plans.

The Supreme Court's decision could significantly impact funding for hospitals that rely on DSH payments to serve low-income, rural, and vulnerable populations, potentially affecting their financial stability and access to healthcare for these communities.