The Centers for Medicare & Medicaid Services, citing requirements laid out in the 2005 Deficit Reduction Act, established that beginning in fiscal year 2009 it will not pay for certain hospital-acquired conditions and infections unless the condition was present-on-admission. To facilitate this payment change, CMS created the hospital-acquired conditions and present-on-admission indicator reporting program (HAC & POA) requiring inpatient prospective payment system hospitals to submit present-on-admission information on diagnoses for inpatient discharges. On the heals of the first phase of the HAC & POA, CMS released fact sheets for both hospital-acquired conditions and present-on-admission reporting on December 14 , 2007 and held a corresponding listening session co-sponsored with the Centers for Disease Control and Prevention on December 17, 2007. During the listening session, CMS addressed the confusion surrounding the selection of the eight hospital-acquired conditions for which the agency has already determined it will not pay higher rates and went on to consider several new conditions for inclusion in the 2009 final rule. Although CMS has begun processing present-on-admission indicator data and will provide feedback to hospitals regarding reporting errors beginning this month, hospitals will not be subject to returned claims until April 1, 2008. The CMS fact sheets and the listening session can be found on the CMS website.