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 is deeply concerned with CMS’ woefully inadequate inpatient and long-term care hospital payment updates. The agency continues to finalize rate increases that are not commensurate with the near decades-high inflation and increased costs for labor, equipment, drugs and supplies that hospitals…
The Centers for Medicare & Medicaid Services today released its fiscal year 2024 final rule for the inpatient psychiatric facility prospective payment system, which updates the IPF payment rate by a net 2.4% in FY 2024.
The Centers for Medicare & Medicaid Services today released its fiscal year 2024 Inpatient Rehabilitation Facility Prospective Payment System final rule.
A bipartisan group of 87 representatives urged the Centers for Medicare & Medicaid Services to reevaluate its proposed payment update for the inpatient prospective payment system for fiscal year 2024, expressing concern that the proposed update does not accurately reflect the current costs of…
Reps. Carol Miller, R-W.Va., and Brad Schneider, D-Ill., are asking their House colleagues to sign onto a letter urging the Centers for Medicare & Medicaid Services (CMS) to reevaluate the agency’s fiscal year (FY) 2024 inpatient prospective payment system (IPPS) proposed rule and consider…
Sens. Robert Menendez, D-N.J., and Kevin Cramer, R-N.D., a bipartisan group of over 30 senators today urged the Centers for Medicare & Medicaid Services to consider reevaluating the proposed payment update in the
In a letter led by Sens. Robert Menendez, D-N.J., and Kevin Cramer, R-N.D., a bipartisan group of over 30 senators urged the Centers for Medicare & Medicaid Services to consider reevaluating the proposed payment update in the inpatient prospective payment system final rule, expressing concern…
A bipartisan group of 87 representatives urged (LINK) the Centers for Medicare & Medicaid Services to reevaluate its proposed payment update for the inpatient prospective payment system for fiscal year 2024, expressing concern that the proposed update does not accurately reflect the current…
Commenting today on the fiscal year 2024 inpatient prospective payment system proposed rule, AHA urged the Centers for Medicare & Medicaid Services to use its authority to adjust the market basket update to account for what the agency missed in the FY 2022 market basket forecast and eliminate…
June 9, 2023 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