Premier Statement on FY 2023 Hospital Inpatient Prospective Payment System (IPPS) Rule

By Soumi Saha, Senior Vice President of Government Affairs, Premier

While we appreciate CMS taking a second look at their market basket calculations and adjusting the IPPS payment rate upward, the truth remains that a 4.3 percent payment update falls woefully short of reflecting the rising labor costs that hospitals have experienced since the onset of the pandemic. Coupled with record high inflation, this inadequate payment bump will only exacerbate the intense financial pressure on American hospitals. Our healthcare providers deserve adequate payment that reflects both the current environment and their heroic actions throughout the course of the pandemic – we must make our providers whole.