April 20, 2022

CMS releases FY 2023 hospital IPPS proposed rule

By: Judy Mathias

Editor's Note

The Centers for Medicare and Medicaid Services (CMS), on April 18, released the FY 2023 Medicare Hospital Inpatient Prospective Payment System (IPPS) proposed rule.

The rule would increase payment rates by a net 3.2% for acute care hospitals that participate in the Hospital Inpatient Quality Reporting Program and are meaningful users of electronic health records.

The 3.2% payment update reflects a market basket update of 3.1% reduced by a projected 0.4% productivity adjustment and an increase of 0.5% required by statute. CMS estimates that total hospital payments will increase by about $1.6 billion.

CMS also projects a $0.8 billion decrease in disproportionate share hospital payments and Medicare uncompensated care payments, combined; a $0.8 billion decrease in new medical technology payments; and a $0.6 billion decrease because of the expiration of Low-Volume Hospital and Medicare Dependent Hospital programs.

Because of the COVID-19 public health emergency, CMS proposes to suppress or refine several measures in the Hospital Value-Based Purchasing Program, Hospital-Acquired Condition Reduction Program, and Hospital Readmissions Reduction Program.


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