The Medicare Payment Advisory Commission issued a preliminary recommendation to provide hospitals with an inpatient payment update 0.4% less than inflation for fiscal 2004. MedPAC, which advises Congress on Medicare policy, will issue its formal recommendations at a meeting in January, but industry officials expressed concern. "Anything less than a full inflation adjustment means hospitals will have less ability to buy those things they need to provide care," said Carmela Coyle, senior VP of policy at the American Hospital Association, adding that MedPAC is using 2 and 3 year old data to determine the new payment schedules. -Modern Health Care, December 16, 2002