Difference between revisions of "Inpatient prospective payment system"

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Revision as of 21:45, 8 February 2017

What is the inpatient prospective payment system (IPPS)?

The Inpatient Prospective Payment System is a system of payment for the operating costs of acute care hospital inpatient stays under Medicare Part A (Hospital Insurance) based on prospectively set rates. The system was set for in Section 1886(d) of the Social Security Act. Under the IPPS, each case is categorized into a diagnosis-related group (DRG). Each DRG has a payment weight assigned to it, based on the average resources used to treat Medicare patients in that DRG. [1]


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  1. Acute Inpatient PPS, CMS.gov