FY 2020 IPPS Proposed Rule Summary

On April 23, 2019, the Centers for Medicare & Medicaid Services (CMS) released its proposed rule describing federal fiscal year (FY) 2020 policies and rates for Medicare’s prospective payment systems for acute care inpatient hospitals (IPPS) and the long-term care hospital prospective payment system (LTCH PPS). The payment rates and policies described in the IPPS/LTCH proposed rule (CMS-1716-P) would affect Medicare’s operating and capital payments for short-term acute care hospital inpatient services and services provided in long-term care hospitals 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. The proposed rule will be published in the Federal Register on May 3, 2019.