BALTIMORE (AP) — State health regulators have approved an increase in Maryland hospital rates.

Multiple news organizations report that the state’s Health Services Cost Review Commission will allow hospitals to increase their rates by 2.72 percent for the coming fiscal year, which starts July 1.

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The decision is a compromise between the higher rates that hospitals sought and a more modest increase proposed by the commission. Hospitals initially wanted a 3.27 increase, while commission staff proposed a 2.16 increase for the full fiscal year.

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CEO of the Maryland Hospital Association Carmela Coyle says the increase is necessary to ensure hospitals focus on community health. Coyle called the compromise balanced.

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