CMS issues Inpatient PPS Proposed Rule

Posted on: 5/5/23

On April 10, the Centers for Medicare & Medicaid Services (CMS) issued its hospital inpatient prospective payment system and long-term care hospital PPS proposed rule for fiscal year 2024. The rule affects inpatient PPS hospitals, critical access hospitals, LTCHs and PPS-exempt cancer hospitals. The rule proposes a net 2.8% rate increase for inpatient PPS payments in FY 2024. This would increase U.S. hospital payments by $3.3 billion, minus a proposed $115 million decrease in disproportionate share hospital and uncompensated care payments and proposed $460 million decrease in new technology add-on payments. OHA is sending impact reports to member hospitals in the next week.

Comments on the proposed rule are due to CMS by June 9. The final rule will be published on or around August 1 and take effect Oct. 1.