FY2025 IPPS Rule Adds $3.2 Billion in Payments to Hospitals

The American College of Radiology® (ACR®) compiled a detailed summary of radiology-relevant topics included in the Centers for Medicare and Medicaid Services (CMS) federal fiscal year (FY) 2025 Hospital Inpatient Prospective Payment System (IPPS) final rule released Aug. 1. This rule provides updates to payment rates and policies for inpatient hospitals and long-term care hospitals. CMS pays for acute care for inpatient stays under the IPPS.

CMS finalized a 2.9% update from FY2024 and estimates this will translate to an increase of $3.2 billion in operating and capital payments to IPPS hospitals. The agency estimates additional payments for inpatient cases involving new medical technologies will increase by approximately $300 million in FY2025, driven by the approval of several new technology add-on payments.

CMS also finalized several new Hospital Inpatient Quality Reporting Program (IQR) provisions, including adopting seven new quality measures. It also modified the proposed method and timeline for increasing the number of electronic clinical quality measures (eCQM) reported in the IQR. It is notable that CMS will begin requiring hospitals to submit eCQM data for all measures beginning in 2028.

These changes take effect Oct. 1.

For more information or if you have questions, contact Kimberly Greck, ACR Senior Economic Policy Analyst.