FY 2022 IPPS final rule: Review MS-DRG RW and overall payment updates

Why This Topic Matters

The final rule affects hospital reimbursement, case payment updates, and operational planning for inpatient Medicare services. It also explains policy changes that can influence hospital cost reporting, technology add-on payments, and future payment methodology.

Article Sections

1. Hospital utilization data

   Discusses the data source CMS used to approximate inpatient hospital utilization for the upcoming fiscal year and why that source was selected.

2. Payment group and RW changes

   Introduces the hospital payment grouping framework under IPPS and LTCH payment systems and explains the annual update process for payment groups and rates.

3. MS-DRG assignment

   Reviews the factors that affect assignment to inpatient payment groups and the general structure of payment group levels.

4. Repeal of market-based MS-DRG RW policy

   Covers the policy history behind changes to the relative weight methodology and the related reporting requirements that were finalized and then reversed.

5. IPPS payment changes for FY 2022

   Summarizes the main FY 2022 inpatient payment update topics, including operating and capital rate updates and related payment adjustments.

6. Operating market basket update

   Describes annual market basket update concepts, including rebasing and revising the input price index used in inpatient payment calculations.

7. IPPS operating payment increase

   Addresses the overall operating payment update for eligible hospitals and the components that influence the final percentage change.

8. NTAP

   Explains the new technology add-on payment policy, the annual update process, and the types of technologies considered under the program.

9. NCTAP

   Describes the COVID-19-related add-on payment policy and its extension through the end of the fiscal year in which the public health emergency ends.

10. Final capital payment increase

    Summarizes the capital input price index update and the resulting capital payment increase for FY 2022.

11. Outlier fixed-loss cost threshold

    Discusses the annual outlier threshold update and the general payment factors included in that calculation.