Inpatient prospective payment system
From Healthcarepedia
What is the inpatient prospective payment system (IPPS)?
The Inpatient Prospective Payment System is a system of payment or reimbursement 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]- ↑ Acute Inpatient PPS, CMS.gov (https://www.cms.gov/Medicare/Medicare-Fee-for-Service-Payment/AcuteInpatientPPS/index.html)