Inpatient Prospective Payment Systems (IPPS)
More than three-quarters of the nation's inpatient acute-care hospitals are paid under the inpatient prospective payment system, while nearly a quarter are paid based on costs and are called Critical Access Hospitals. The IPPS pays a flat rate based on the average charges across all hospitals for a specific diagnosis, regardless of whether that particular patient costs more or less. Everything from an aspirin to an artificial hip is included in the package price to the hospital.
On March 8, CMS released the proposed fiscal year \(FY\) 2005 occupational mix public use file \(PUF\), which contains survey data submitted from acute care hospitals on the occupational mix of their employees. Since this data will be used to adjust Medicare hospital payments across geographic…