CMS takes first steps toward cost and severity payment changes in final rule
Accreditation Connection, August 7, 2006
CMS last week announced plans for sweeping reforms to the Inpatient Prospective Payment System (IPPS), with some changes effective October 1 and others to be phased in over a three-year period.
CMS administrator Mark McClellan, MD, Ph.D., said that starting October 1, CMS will begin to use estimated hospital costs instead of charges as a basis for acute care inpatient reimbursements, with full implementation in FY 2009. CMS will also begin to use severity of patient's illnesses to calculate DRG payments, with full implementation planned for FY 2008.
These changes are explained in full in the IPPS final rule, which you can read at the CMS Web site. The final rule will be posted in the Federal Register on August 18.
Look for expanded coverage on this topic in Briefings on Coding Compliance Strategies, published by HCPro Inc.
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