CMS is moving ahead with most of its proposed changes, including cuts to disproportionate share hospital (DSH) payments, in the fiscal year (FY) 2024 Inpatient Prospective Payment System (IPPS) final rule. The rule, released August 1, provides updates on inpatient hospital reimbursement, ICD-10-CM/PCS coding and diagnosis-related group (DRG) changes, quality and reporting programs, and more.
Payment changes
CMS finalized a 3.1% payment increase for hospitals that meet quality and reporting requirements for FY 2024, up from the 2.8% CMS floated in the proposed rule. This represents an increase in inpatient hospital payments of $2.2 billion compared to FY 2023. However, DSH payments will decrease by $957 million and CMS is projecting payments for new medical technologies will decrease by $364 million.