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One Big Beautiful Bill Act (OBBBA): Hospital reimbursement and Medicare payments [updated]

 Updated on July 9, 2025 The One Big Beautiful Bill Act (OBBBA) — a major budget reconciliation bill passed by the U.S. House of Representatives in May — became law on July 4. While the legislation covers a wide range of national issues, several key Medicare fee-for-service (FFS) provisions could have a direct and lasting impact on hospitals and health systems.  Because OBBBA has Medicare FFS implications, DataGen analyzed the impact of these major areas. Here’s a preview of what we’re seeing so far — and what hospital leaders need to keep on their radar:  update to physician Medicare payments;  potential 4.0% additional Pay-As-You-Go (PAYGO) sequestration reduction; and  Medicare Disproportionate Share Hospital uncompensated care impact.  1. Physician payment updates   For the calendar year 2026, physician payments are slated to increase by 2.5%.   2. The potential new 6% sequester  With the new legislation, Congress may allow the Statutory...

TEAM moves forward: What hospitals must do now with CMS baseline data [updated]

New updates as of July 2  CMS has released Transforming Episode Accountability Model (TEAM) performance year (PY) 1 baseline period data to a second wave of participating hospitals. Hospitals included in this wave had their Data Request and Attestation Form (DRA) and Data Sharing Agreement (DSA) submitted to CMS through the TEAM participant portal by May 26.  Any hospital that submitted their DRA and DSA to CMS after May 26 will not receive their TEAM PY1 baseline period data until fall 2025.  Important note:  If your hospital won’t receive its TEAM PY1 baseline data until fall 2025, don’t let that delay your preparation. Simulated TEAM episodes of care can still offer valuable insight into how your hospital is positioned ahead of the model’s launch.   All hospitals should also expect an update to their baseline data, including preliminary target prices, in the fall of 2025. This will account for the additional 2024 data run-out and pending methodological upda...

Quarterly SPARCS Compliance Update: Q1 2025 Due!

Key compliance dates for SPARCS Data: Q4 2024 and Q1 2025 First quarter 2025 Statewide Planning and Research Cooperative System (SPARCS) data submissions are due. In addition, the due dates for the third final warning (June 15) and Statements of Deficiency (July 15) for Q4 2024 are approaching. Here are the key dates hospitals, ambulatory surgery centers and health systems need to know to remain SPARCS compliant.   Q4 2024 SPARCS compliance deadlines  June 15  Final/third warning for Q4 2024 data   Hospitals and ASCs that have not resolved their Q4 2024 data errors after receiving three warnings will be issued an SOD.   July 15  SOD issued for Q4 2024 data   Facilities will be issued an SOD on this date.  Q1 2025 SPARCS compliance deadlines   June 30  Submission deadline for Q1 2025 data   The deadline for submitting Q1 2025 SPARCS data falls on this date. Ensure your data are accurate and submitted on ...

New Medicaid updates shake up PCMH enhanced payments in New York

Is your practice ready to meet the latest requirements?  On May 27, DOH released key updates to the Patient-Centered Medical Home (PCMH) enhanced payment program for Medicaid providers. These changes tighten the enhanced payment requirements and introduce new reporting standards tied to Social Care Network (SCN) attestation and quality performance.  If your practice currently relies on PCMH incentive payments, here's what you need to know to stay compliant — and how DataGen can help.  What's changing?  Historically, all New York state PCMH-recognized practices received a $6 per-member-per-month (PMPM) payment for Medicaid patients. That core payment continues — but now, retaining the additional enhanced payment comes with new requirements over the next reporting period years.   Between April 1, 2024 and March 31, 2026:  All PCMH-recognized practices qualify for:  $6.00 PMPM for Medicaid patients; and  $4.00 PMPM for patients up to age 21 or $...

CMS FFY 2026 Medicare IPPS proposed rule overview

When you partner with DataGen and use our Medicare fee-for-service policy analytics solution, you receive Medicare IPPS proposed rule payment briefs, along with additional essential Medicare fee-for-service (FFS) updates and materials throughout the year.   DataGen provides an overview of the Centers for Medicare and Medicaid Services’ (CMS) federal fiscal year (FFY) 2026 proposed rule for the Medicare Inpatient Prospective Payment System (IPPS)    Overview of policies for the FFY 2026 IPPS new proposed rule The DataGen Medicare FFS policy analytics team summarized and analyzed the following policy changes in the new proposed rule:  utilizing FFY 2024 Medicare Provider and Review (MedPAR) and FFY 2023 Hospital Cost Reporting Information System (HCRIS) data for standard calculations;  updates to the Medicare Disproportionate Share Hospital (DSH) payment policies, including hospital eligibility for DSH Uncompensated Care (UCC) payments in FFY 2026 being...

Partnering with Social Care Networks under New York's 1115 waiver

 SCNs and the value-based care mandate in New York state New York’s 1115 Medicaid waiver represents a pivotal opportunity for providers to engage in value-based care models that improve outcomes and reduce costs. At the heart of this transformation are Social Care Networks (SCNs) — a state initiative designed to address health-related social needs (HRSN) such as food insecurity, housing instability and transportation barriers for Medicaid recipients.  SCNs are central to New York’s long-term strategy for integrating clinical and non-clinical care. For primary care providers (PCPs), engaging with SCNs offers not only a chance to better serve vulnerable populations but also to receive enhanced reimbursement through the waiver, particularly when paired with the National Committee for Quality Assurance’s (NCQA) Patient-Centered Medical Home (PCMH) recognition .  What are Social Care Networks (SCNs)?  SCNs are regional networks of community-based organizations (CBOs) an...

AHIMA HIP Week 2025: DataGen’s HI Heroes

Our health information (HI) professionals are super!   You’ve heard the expression, “Not all superheroes wear capes.”   This directly applies to DataGen’s team of experts, who work tirelessly to help clients with our HIM medical coding solution and SPARCS submission tool, UDS (UIS Data System™) .   For the past two years, we’ve celebrated members of our top-notch team during the American Health Information Management Association’s (AHIMA’s) Health Information Professionals (HIP) Week , which occurs every April.   “The meticulous work of UDS team members in troubleshooting and enhancing the flow of health information within New York State directly contributes to improved patient care and organizational efficiency,” says Kevin Tedesco, senior director, advanced analytics, DataGen. “Their efforts ensure that high-quality data is captured and utilized for trending illness, setting payment rates, addressing community health needs and ensuring the quality healthcare provi...

Quiz and Answers: AHIMA HIP Week 2025

What you learned about health information (HI) careers  Throughout HIP Week 2025 , we ran a daily LinkedIn quiz to highlight the essential work of health information (HI) professionals.   If you followed along, great! If you missed a question or two, don’t worry — we’ve recapped all the correct answers (and explained why the others were off the mark). Or, you can take the quiz if you missed it altogether!  Monday’s topic: Who are HI professionals? Poll question: What’s the core focus of HI pros?  Managing patient records Providing medical treatment  Prescribing medications  Poll answer: What’s the core focus of HI pros?  ✅ Managing patient records (Correct)  ❌ Providing medical treatment  ❌ Prescribing medications  Why: HI professionals specialize in handling patient data — making sure it’s accurate, secure and accessible. They don’t treat or diagnose patients directly.  Tuesday’s topic: Where do HI professionals work?  ...

Your guide to Community Health Assessments (CHAs): Data and reporting

Get started implementing an effective Community Health Assessment (CHA) strategy Community Health Assessments (CHAs) play a crucial role in shaping the future of public health by identifying key health challenges and opportunities within communities. These assessments provide a foundation for data-driven decision-making, resource allocation and collaborative health improvement strategies.   According to the Centers for Disease Control and Prevention (CDC), CHAs help communities develop policies and interventions that address health disparities and improve overall well-being. The National Association of County and City Health Officials (NACCHO) offers extensive resources for effectively conducting CHAs.  In this guide, we will explore what a Community Health Assessment is, its purpose, key components and benefits. We will also provide real-world examples and solutions to overcome common challenges. Whether you're a healthcare administrator, policymaker or community leader...

Your essential guide to a Community Health Needs Assessment (CHNA)

A Community Health Needs Assessment (CHNA) is a vital tool for hospitals, healthcare organizations and community stakeholders to evaluate and address the health needs of their populations. This guide provides a comprehensive overview of the CHNA, including its purpose, requirements, data analysis and examples.  What is a Community Health Needs Assessment?  A CHNA is a systematic process that identifies key health issues and needs within a community. It serves as a foundation for healthcare providers and policymakers to make informed decisions that improve health outcomes. Learn more about the fundamentals of a CHNA in our detailed guide: What is a Community Health Needs Assessment? .  The purpose of a Community Health Needs Assessment   The purpose of a CHNA is to:  Identify significant health issues  Determine prevalent health conditions affecting the community.  Recognize disparities in healthcare access and outcomes.  Highlight social determin...

Boost patient safety outcomes: DataGen’s CSI solution [video inside]

Watch the video below. How safety culture and Joint Commission standards improve patient outcomes  As the healthcare landscape continues to evolve, one constant remains: a strong patient safety culture is key to better outcomes for both patients and staff. When safety is prioritized, it creates a ripple effect. It improves patient experience, boosts workforce well-being and strengthens overall quality of care.  To reduce medical errors, enhance outcomes, and support the vital work of nurses and clinical staff, a strong culture of safety isn’t optional — it’s essential. It’s the foundation that allows healthcare teams to thrive and deliver the best possible care. So, how can healthcare providers leverage these culture of safety insights to drive meaningful improvements?  Improving patient safety culture isn’t just about compliance — it’s about driving real change, improving outcomes and empowering leadership with data-driven decisions. That’s where DataGen’s Culture of Saf...