Executive Summary: Key Financial and Operational Impacts from the Final FY21 IPPS Rule

The 2021 inpatient prospective payment system (IPPS) final rule was made available on September 2, 2020. CMS estimates increases to the IPPS rates required by the statute, in conjunction with other payment changes in this final rule, result in an estimated $3.5 billion increase in FY21 payments (+2.7%) compared to the FY20 final rule. The increases are primarily driven by a $3.0 billion increase in FY21 operating payments and a net increase of $506 million resulting from estimated changes in FY21 capital payments and new technology add-on payments. This summary has been updated to reflect the correct notice issued on December 1, 2020.