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CMS to Cut Inpatient Payouts in 2008

by Barbara Kram, Editor | August 06, 2007

The rule continues to phase in a change introduced in FY 2007 which would better align payment with the costs of care by using estimated hospital costs, rather than list charges, to establish relative weights for the DRGs. Under the rule, hospitals will be paid during 2008 based on a blend of one-third charge-based weights and two-thirds hospital cost-based weights for the DRGs. In 2009, hospitals will be paid 100 percent based on cost-based DRG weights.

To read more on this rule issued please click this URL for the IPPS regulation:

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http://www.cms.hhs.gov/AcuteInpatientPPS/downloads/CMS-1533-FC.pdf

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