The Centers for Medicare and Medicaid Services (CMS) recently updated its geographic delineations, which may create major changes for hospitals and other health-care providers. Payments for health-care services are often impacted by a provider’s geographic location. For hospitals, Medicare payments are adjusted by a wage index, which is intended to account for differences in regional labor markets.
Every 10 years, following a decennial census, the U.S. Office of Management and Budget (OMB) uses updated population and commuting pattern data to update core-based statistical areas, which CMS typically adopts for its regulations. Earlier this month, in the Fiscal Year 2025 Hospital Inpatient Prospective Payment System (IPPS) final rule, CMS announced that it would adopt the latest data and corresponding metropolitan statistical area. Based on the updated configurations, CMS believes that 53 counties and 33 hospitals that were once considered part of a Medical Savings Account (MSA) will be reconsidered as a rural area beginning in fiscal year 2025. CMS projects that 54 counties and 24 hospitals that were considered rural areas will be reconsidered as urban areas under the revised OMB delineations.
Recent Posts
Turn Insight Into Action! Attend Learning Labs at AAA 2026
Ready to take your professional development to the next level? At AAA 2026, Learning Labs are your chance to go beyond lectures and dive into…
Your Support Makes the Difference—Let’s Finish the Year Strong
As we wrap up the year, I want to thank you for your generosity supporting the AAA Foundation’s work. The enclosed report highlights what you…
Audiology Faces New Challenges Under Draft Federal Loan Rule: What Comes Next
Member Action Needed Soon! The U.S. Department of Education’s Advisory Committee has reached consensus on proposed regulations implementing the higher education provisions of the One…


