On April 10, 2023, CMS released its proposed rule describing federal fiscal year (FY) 2024 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 1, 2023. The public comment period will end at 5:00 PM ET on June 9, 2023. The payment rates and policies described in the IPPS/LTCH proposed rule (CMS-1785-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, finalized policies will be effective October 1, 2023.