This bill creates a new Medicare payment incentive to encourage hospitals to use automated technology for preparing intravenous medications safely. Beginning October 1, 2025, hospitals will receive an additional $40 payment from Medicare for each intravenous drug preparation made using closed-system automation devices—machines that prepare medications without human handling, reduce contamination risks, and verify drug accuracy automatically. The incentive applies through September 30, 2031, with a yearly spending cap of $40 million total across all hospitals. The legislation defines specific technical requirements for the automation technology, including FDA approval, barcode verification of ingredients, and continuous environmental monitoring to maintain sterile conditions. This targeted payment increase aims to help hospitals invest in safer medication preparation infrastructure while protecting Medicare beneficiaries from compounding errors and contamination.
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