CMS on Wednesday issued two final rules updating payment rates and quality reporting programs for inpatient rehabilitation facilities (IRFs) and inpatient psychiatric facilities, in today's bite-sized hospital and health industry news from the District of Columbia, Maryland, Minnesota, and South Dakota.

• Maryland: CMS on Wednesday issued two final rules updating payment rates and quality reporting programs for IRFs and inpatient psychiatric facilities, both of which will see a payment rate increase in fiscal year (FY) 2024. Specifically, one updates the IRF prospective payment system (PPS) by 3.4%, and adjusts the outlier threshold, resulting in an estimated 4% total payment increase for IRFs in FY 2024. The other rule updates the inpatient psychiatric facility PPS by 3.3%, and adjusts the outlier threshold, resulting in an estimated 2.3% total payment increase for inpatient psychiatric facilities in FY 2024. The changes are effective for discharges beginning Oct. 1, 2023 through Sept. 30, 2024. (Berryman, Modern Healthcare, 7/27)
• District of Columbia: The Biden administration has launched its first cancer program under the Advanced Research Projects Agency for Health (ARPA-H) aimed at helping surgeons better remove cancerous tumors without damaging nerves, blood vessels, or other healthy tissue. ARPA-H said it anticipates making multiple awards to develop tools that can help surgeons localize tumors and healthy structures. (Bettelheim, Axios, 7/27)
• Minnesota/South Dakota: Sanford Health and Fairview Health Services on Thursday announced their decision to cancel their planned merger that would have created a $14 billion health system with just under 60 hospitals. "The significant benefits we identified for a combined system with Fairview Health Services compelled us to exhaust all potential pathways to completing our proposed merger," said Sanford CEO Bill Gassen. "However, without support for this transaction from certain Minnesota stakeholders, we have determined it is in the best interest of Sanford Health to discontinue the merger process." (Bannow, STAT+, 7/27)