FFY 2023 IPPS Final Rule: Standardized Base Rates

CMS proposes a net increase of 3.8% to hospital base rates, after budget neutrality, for hospitals that comply with the CMS quality reporting program (QRP). As it has done in prior years, CMS will reduce payments to those hospitals that do not meet Hospital Inpatient Quality (IQR) or meaningful Electronic Health Record (EHR) requirements. CMS finalized FFY 2023 rates based on fewer projected COVID-19 hospitalizations in FFY 2023 than in base-year data from FFY 2021 (i.e., FFY 2021 MEDPAR data1).

Table 3: FFY 2023 IPPS Base Rates


For more information, please contact Scott Besler at (925) 685-9312 or scott.besler@toyonassociates.com.

1 Medicare Provider Analysis and Review (MEDPAR): Data on Medicare beneficiaries using hospital inpatient services at https://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/MedicareFeeforSvcPartsAB/MEDPAR

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FFY 2023 IPPS Final Rule: National Medicare IPPS Estimates

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FFY 2023 IPPS Final Rule: DRG Weights and Outlier Cost Threshold