FY16 IPPS Final Rule Fact Sheet

The Centers for Medicare & Medicaid Services (CMS) issued a final rule updating payment rates under the Medicare inpatient prospective payment system (IPPS) for operating and capital-related costs of acute care hospitals in fiscal year 2016 (FY16). Some of these changes implement certain statutory provisions contained in the Affordable Care Act (ACA), the Pathway for Sustainable Growth Reform (SGR) Act of 2013, the Protecting Access to Medicare Act of 2014, and other legislation. Additionally, the final rule updates policies relating to the Hospital Value-Based Purchasing (VBP) Program, the Hospital Readmissions Reduction Program (HRRP), and the Hospital-Acquired Condition (HAC) Reduction Program. In the rule, CMS also updated the payment policies and the annual payment rates for the Medicare prospective payment system (PPS) for inpatient hospital services provided by long-term care hospitals (LTCHs) for FY16.