August 11, 2022

ACR Releases Detailed Summary of FY 2023 IPPS Final Rule

The American College of Radiology® (ACR®) has compiled a detailed summary of the radiology-related topics included in the Centers for Medicare and Medicaid Services (CMS) federal fiscal year (FY) 2023 final rule for the Inpatient Prospective Payment Systems (IPPS) for Acute Care Hospitals and the Long-Term Care Hospital (LTCH) Prospective Payment System. The rule takes effect Oct. 1.

CMS finalized a base FY 2023 IPPS payment update of +4.3%, which is based on a market basket update of 4.1% and the multifactor productivity (MFP) adjustment, which CMS estimates a 0.3% reduction. The MFP, also known as total factor productivity (TFP), is a measure of economic performance that compares the amount of goods and services produced (output) to the amount of combined inputs used to produce those goods and services.

The IPPS final rule also gave updates for several radiology-related applications for new technology add-on payments, as well as some changes to graduate medical education (GME) payments due to the outcome of litigation from the U.S. District Court for the District of Columbia. The court struck down CMS’ method of calculating direct GME payments to teaching hospitals when those hospitals’ weighted full-time equivalent (FTE) resident count exceed their direct GME FTE cap. The court ordered CMS to recalculate reimbursement owed.

If you have any questions, contact Kimberly Greck, ACR Economic Policy Analyst.