Proposed changes to the inpatient prospective payment system (IPPS) take effect on

Proposed changes to the inpatient prospective payment system (IPPS) take effect on October 1 of each fiscal year (FY), which begins on October 1 and ends on September 30 of the next calendar year. The IPPS final rule is usually issued by the Centers for Medicare & Medicaid Services (CMS) around August 1 of each year, and it updates the Medicare payment policies and rates for acute care hospitals and long-term care hospitals for the upcoming FY. The effective date of the final rule is October 1, unless otherwise specified by CMS 2.

References: 1: Inpatient Prospective Payment System (IPPS) 2023 Final Rule Summary of … 3 2: Acute Inpatient PPS | CMS 1