Medicare payments to acute-care hospitals for inpatient services are expected to drop 0.5% in 2012 from 2011 levels while reimbursements to long-term acute care hospitals should increase 1.9%, CMS said in a proposed rule. The guidance said the payments were increased because of a ruling in Cape Cod vs. Sebelius on the issue of rural-floor budget neutrality but then lowered to reflect documentation and coding adjustments.

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