Inpatient proepective payment system
IPPS is the Medicare PPS used for acute care hospital inpatient stays. Under the IPPS, each case is categorized into a diagnosis-related group (DRG) with a payment weight assigned to it based on the average resources used to treat patients in that particular DRG. Annually, Medicare publishes a final rule with revisions to the IPPS for the upcoming fiscal year which goes into effect on October 1st. IPPS on the CMS Web site.
Relative Weight: Average resources required to care fo cases in that DRG
Hospital Payment Rate is the adjusted national standardized amount that considers type of hospital, designation and wage index.
DRG Relative Weight X Hospital Base Rate = Hospital Payment
Relative Weight: Average resources required to care fo cases in that DRG
Hospital Payment Rate is the adjusted national standardized amount that considers type of hospital, designation and wage index.
DRG Relative Weight X Hospital Base Rate = Hospital Payment