FY 2023 Inpatient Prospective Payment System/LTCH Proposed Rule Summary

On April 18, 2022, CMS released its proposed rule describing federal fiscal year 2023 policies and rates for Medicare’s inpatient prospective payment system (IPPS) and the long-term care hospital (LTCH) prospective payment system (PPS). The proposed rule will be published in the Federal Register on May 10, 2022. The public comment period on the rule will end on June 17, 2022. The payment rates and policies described in the IPPS/LTCH proposed rule (CMS-1771-P) affect Medicare’s operating and capital payments for short-term acute care hospital inpatient services and services provided in LTCHs paid under their respective prospective payment systems. The proposed rule also sets forth rate-of-increase limits for inpatient services provided by certain “IPPS-Exempt” providers, such as cancer and children’s hospitals, and religious nonmedical health care institutions, which are paid based on reasonable costs. Unless otherwise specified, policies will be effective October 1, 2022.

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