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Alert: Update to IPPS Federal Fiscal Year 2025 Final Rule

November 5, 2024 / 2 min read

The Centers for Medicare & Medicaid Services has issued an update to the Inpatient Prospective Payment System for the federal fiscal year 2025, following a U.S. Court of Appeals ruling regarding adjustments to bottom-quartile hospitals for the Medicare wage index.

On Sept. 30, 2024, the Centers for Medicare & Medicaid Services (CMS) issued an interim final rule that canceled the low wage index policy for the 2025 Inpatient Prospective Payment System (IPPS). Here’s what you need to know.

Background

Key changes

Impact

Future considerations

Action required

Providers must be aware of these changes to ensure proper reimbursement, and potential implications for their facilities during federal fiscal years 2020–2024. For further details, please refer to the official CMS update.


Concerned about how this decision impacts your hospital?
Request a custom 2025 Medicare IPPS rate impact analysis.

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