On August 1, 2024, CMS released the FFY 2025 Inpatient Prospective Payment System Final Rule (CMS-1808-F).
- IPPS payments up 2.9% (3.4% market basket – 50 basis point productivity adjustment) for successful participants of Inpatient Quality Reporting and electronic health records.
- LTC standard payment rate to be increased 3% with a projected 0.8% decrease in high-cost outlier payments as a percentage of total LTCH PPS standard Federal rate payments.
- Uncompensated Care payments expected to decrease $0.2BB.
- Payments for inpatient stays involving new technology expected to rise $.3BB.
- Medicare Dependent Hospital additional payments and low-volume hospital payments set to expire December 31, 2024, unless again renewed by legislation as was done in the past.
- Wage Index Labor market areas updated with source data based on the 2020 Census.
- Low wage index policy extended to protect low-wage index hospitals despite litigation.
- Over half of the additional 200 Medicare-funded residency positions will be psychiatry related.
- Seven new quality measures, removed five, and modifying two others.
- Readmission Reduction Program has no changes and will continue.
- Hospital Value-Based Purchasing Program has no changes and will continue.
Here is a link to the version currently on display for public inspection:
Final Rule CMS-1808_F
Here is a link to the Fact Sheet from CMS that summarize the Final Rule:
Fact Sheet CMS-1808-F
