Current Report Articles
CMS Finalizes the 2021 IPPS Rule for 2021

CMS (Sept. 25, 2020) – On Sept. 2, 2020, the Centers for Medicare & Medicaid Services released the final federal fiscal year 2021 payment rule for the Medicare Inpatient Prospective Payment System. The final rule reflects the annual updates to the Medicare fee-for-service inpatient payment rates and policies. Program changes would be effective for discharges on or after Oct. 1, 2020, unless otherwise noted. CMS estimates the overall impact of this final rule update to increase approximately $3.528 billion in aggregate payments for acute care hospitals in FFY 2021. A summary of the major hospital provisions of the IPPS final rule is included in the Payment Rule Brief. A hospital-specific impact analysis, demonstrating how your hospital payments will be impacted by the IPPS final rule, will be distributed when available.

A copy of the final rule and other resources related to the IPPS are available on the CMS website. The final rule was published in the Federal Register on Sept. 18. Due to the resources dedicated to responding to the novel coronavirus (COVID-19) pandemic, CMS waived the 60-day delay in the effective date of the IPPS final rule. There will instead be a 30-day delay of the effective date of the final rule.

KHA's Data Contractor, HANYS DataGen, will host a national webinar from 2 to 3 p.m. on Wednesday, Sept. 30, for hospitals to more fully understand the provisions included in the FFY 2021 IPPS final rule.

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--Tish Hollingsworth