CMS FFY 2027 IPPS Correction Is More Than Typographical

CMS published a correction to the FY 2027 IPPS Final Rule this week. While the notice does not change the policies or payment methodologies finalized in August, several corrections required CMS to rerun actual FY 2027 payment calculations.

CMS recalculated Medicare DSH uncompensated-care Factor 3 for all DSH-eligible hospitals after correcting the status of an IPPS hospital that had mistakenly been treated as a Rural Emergency Hospital, along with merger information affecting four hospitals.

CMS also recalculated MS-DRG relative weights, wage indexes, budget-neutrality factors, the fixed-loss outlier threshold, standardized amounts and other FY 2027 payment figures.

Factor 3 changes are limited in magnitude for most hospitals, but hospitals using FY 2027 IPPS payment files should make sure they are working from the corrected files rather than the original August Final Rule data.

If you have questions, please contact Adam Blackwell at adamblackwell@govdataservices.com