April 21, 2022

CMS Releases Hospital Inpatient Payment System Proposed Rule

The Centers for Medicare and Medicaid Services (CMS) released the federal fiscal year (FY) 2023 Hospital Inpatient Prospective Payment Systems (IPPS) for Acute Care Hospitals and the Long-Term Care Hospital (LTCH) Prospective Payment System Proposed Rule April 18. The proposed rule provides updates for Medicare fee-for-service payment rates and policies for inpatient hospitals and long-term care hospitals for FY 2023.

CMS pays acute care for inpatient stays under the IPPS. The agency sets base payment rates based on the patient’s diagnosis and severity of illness. Subject to certain adjustments, a hospital receives a single payment for the case based on the payment classification assigned at discharge through Medicare Severity Diagnosis-Related Groups.

This rule comes with a 60-day comment period. The American College of Radiology® (ACR®) is developing an in-depth summary of the proposed rule.

If you have any questions, please contact Christina Berry, ACR Team Lead, Economic Policy or Kimberly Greck ACR Economic Policy Analyst.