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 AHA has been making the case to CMS urging it to adjust the market-basket update to account for the unprecedented inflationary environment hospitals and health systems are experiencing, and eliminate the productivity cut. We also have asked Congress to weigh in with the agency to make these鈥
Sens. Bob Menendez, D-N.J., and Kevin Cramer, R-N.D., are spearheading a 鈥淒ear Colleague鈥 letter to the Centers for Medicare & Medicaid Services (CMS) urging the agency to make critical changes to the hospital inpatient prospective payment system proposed rule for fiscal year (FY) 2023 to more鈥
The AHA released a new fact sheet that hospital and health system leaders can use as they ask Congress to urge CMS to make two critical changes to the IPPS proposed rule.
America鈥檚 hospitals and health systems continue to face unprecedented financial pressures due to the ongoing effects of the COVID-19 pandemic and current inflationary economy. Historic inflation has extended and heightened the already severe economic instability brought on by the pandemic resulting鈥
AHA called on Congress to urge CMS to make two critical changes to the hospital inpatient prospective payment system proposed rule for FY 2023.
June 17, 2022 The Honorable Chiquita Brooks-LaSure Administrator Centers for Medicare & Medicaid Services Hubert H. Humphrey Building 200 Independence Avenue, S.W. Room 445-G Washington, DC 20201
The Centers for Medicare and Medicaid Services (CMS) April 18 issued its inpatient prospective payment system (PPS) and long-term care hospital (LTCH) proposed rule for fiscal year (FY) 2023. The rule affects inpatient PPS hospitals, critical access hospitals (CAHs), LTCHs and PPS-exempt cancer鈥
On May 25, 2022 from 1:00-2:00 p.m. ET, AHA hosted a webinar to review key provisions in the Centers for Medicare & Medicaid Services鈥 fiscal year 2023 proposed rule for the inpatient prospective payment system (IPPS).
AHA letter to the Centers for Medicare & Medicaid Services regarding the FY 2023 IRF prospective payment system (PPS) proposed rule.
The Centers for Medicare & Medicaid Services (CMS) April 18 issued its hospital inpatient prospective payment system (PPS) and long-term care hospital (LTCH) PPS proposed rule for fiscal year (FY) 2023.