Inpatient Prospective Payment Systems (IPPS)

More than three-quarters of the nation's inpatient acute-care hospitals are paid under the inpatient prospective payment system, while nearly a quarter are paid based on costs and are called Critical Access Hospitals. The IPPS pays a flat rate based on the average charges across all hospitals for a specific diagnosis, regardless of whether that particular patient costs more or less. Everything from an aspirin to an artificial hip is included in the package price to the hospital.

The Centers for Medicare & Medicaid Services (CMS) August 2 issued its hospital inpatient prospective payment system (PPS) and long-term care hospital (LTCH) PPS final rule for fiscal year (FY) 2018. Select highlights of the final rule related to the inpatient PPS follow.
The Centers for Medicare & Medicaid Services late today issued its hospital inpatient prospective payment system final rule for fiscal year 2018. The rule will increase rates by 1.2% in FY 2018, after accounting for inflation and other adjustments required by law.
The Centers for Medicare & Medicaid Services late today issued its long-term care hospital prospective payment system final rule for fiscal year 2018. Under the rule, traditional LTCH PPS rates will be updated by 1.0%, as mandated, while payment rates for site-neutral cases will decrease by a…
The Centers for Medicare & Medicaid Services yesterday issued a final rule updating Medicare’s hospice wage index, payment rates and cap amount for fiscal year 2018. The Medicare Access and CHIP Reauthorization Act of 2015 set the hospice market basket update at 1% for FY 2018, meaning…
The AHA supports  a number of provisions in the inpatient prospective payment system proposed rule for fiscal year 2018, but has concerns about certain proposed changes related to disproportionate share hospital payments, the documentation and coding reduction, and quality programs, AHA…
The AHA supports a number of provisions in the inpatient prospective payment system proposed rule for fiscal year 2018, but has concerns about certain proposed changes related to disproportionate share hospital payments, the documentation and coding reduction, and quality programs, AHA Executive…
Proposed Rule: Medicare Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals and The Long-Term Care Hospital Prospective Payment System and Proposed Policy Changes and Fiscal Year 2018 Rates and Other Issues
Sen. Grassley's letter to CMS regarding the Rural Community Hospital Demonstration Program