April 11, 2023

CMS releases annual IPPS proposed rule for FY 2024

By: Judy Mathias

Editor's Note

The Centers for Medicare and Medicaid Services (CMS), on April 10, released its fiscal year (FY) 2024 Medicare inpatient prospective payment system (IPPS) proposed rule, which would increase Medicare payments by 2.8% for hospitals that are meaningful users of electronic health records and submit quality data.

The 2.8% payment rate update reflects a hospital market basket increase of 3.0% plus a productivity cut of 0.2%. It will generally increase hospital payments by $3.3 billion, minus a $115 million decrease in disproportionate share hospital payments and a $460 million decrease in new medical technology payments.

CMS also is proposing to add 15 new health equity hospital categorizations and to change the severity of three diagnosis codes that describe homelessness.

In addition, the proposed rule clarifies the data and information required under the physician self-referral law, commonly referred to as the Stark Law. A hospital must satisfy all requirements of either the whole hospital exception or the rural provider exception. To use these exceptions, a hospital may not increase the aggregate number of operating rooms, procedure rooms, and beds above the level it was licensed for on March 23, 2010, unless CMS has granted an exception.

CMS will accept comments on the proposed rule through June 9.


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