FFY 2024 IPPS Proposed Rule: Standardized Base Rates and MS-DRG Relative Weights
On April 10, the Centers for Medicare & Medicaid Services (CMS) published the FFY 2024 IPPS Proposed Rule (effective for discharges on or after October 1, 2023).” Toyon is pleased to provide our summary of Section 2 FFY 2024 IPPS Proposed Rule: Standardized Base Rates and MS-DRG Relative Weights.
Standardized Base Rates and MS-DRG Relative Weights
CMS proposes a net increase of 2.8% to hospital base rates, after budget neutrality, for hospitals that comply with the CMS quality reporting program (QRP). CMS reduces payments to hospitals that do not meet Hospital Inpatient Quality (IQR) or annually attest to being a meaningful Electronic Health Record (EHR) user. CMS updated FFY 2024 rates using FFY 2022 MEDPAR claims3 and cost report data from FFY 2021 Healthcare Cost Report Information System (HCRIS) data. Also, the FFY 2024 MS-DRG relative weights are capped at no more than a ten percent reduction from FFY 2023 MS-DRG relative weights.
Proposed FFY 2024 IPPS Base Rates
For more information, please contact Robert Howey at robert.howey@toyonassociates.com
3 Medicare Provider Analysis and Review (MEDPAR): Data on Medicare beneficiaries using hospital inpatient services here
Comments are due to CMS by Friday, June 9 via https://www.regulations.gov/ (see instructions under the “submit a comment” tab and reference file code “CMS-1785-P”). Toyon will share our comment letter in the coming weeks.