IPPS
Medical abbreviation · Health Insurance
| Stands for | Inpatient Prospective Payment System |
|---|---|
| Categories | Medical |
IPPS stands for Inpatient Prospective Payment System, a health insurance abbreviation.
Medicare's method of paying acute care hospitals a predetermined amount per inpatient stay based on the MS-DRG, adjusted for local wages, teaching status, a high share of low-income patients and unusually costly outlier cases. Rates are updated in an annual rule effective October 1.
Example: IPPS final rule raised hospital payment rates for the coming fiscal year.
Usage notes
Introduced in 1983 to replace cost-based reimbursement, it shifted the financial risk of long stays to hospitals. Critical access hospitals and some specialty hospitals are paid differently. The annual rule also carries quality programs such as readmission and hospital-acquired condition penalties.
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This entry is for general education and is not medical advice. Abbreviation use varies between institutions; always confirm in context.