Government Regulation and Guidance
2024 Hospital Inpatient Prospective Payment System and
Long-Term Care Hospital Prospective Payment System Final Rule
Initiative Description: The final rule includes the required annual updates on Medicare payment policies for Inpatient Prospective Payment System (IPPS) hospitals and long-term care hospitals (LTCHs). The updates include changes to the payment structure of IPPS and LTCHs and updates to social determinants of health diagnoses codes, including requiring screening for social drivers of health and promoting health equity and patient safety. Mandatory reporting went into effect in October 2023.
Strategic and Tactical Uses: IPPS provides opportunities for alignment, primarily through investments in health equity. The rule includes healthy equity adjustments to the Hospital Value-Based Purchasing Program to reward delivery of excellent care in underserved populations. These adjustments include incentives to hospitals that provide care to populations with a high proportion of underserved individuals, as defined by dual eligibility status. The rule also changed the definition of three diagnosis codes describing homelessness to accurately reflect the use of hospital resources during treatment: the severity of a patient’s illness, the complexity of service, and the consumption of resources.
Multi-payer Alignment Foundational Element: Advancing Health Equity, Aligning Key Payment Model Components
Timeframe: Active
For additional information, please visit https://www.cms.gov/newsroom/fact-sheets/fy-2024-hospital-inpatient-prospective-payment-system-ipps-and-long-term-care-hospital-prospective-0
Who Might Use This: Health Plans | Providers