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    Inpatient Prospective Payment System

    Medicare's payment system for inpatient hospital stays.

    Reviewed by Christian Espinosa, Founder, Blue Goat CyberLast reviewed May 5, 2026

    Definition

    IPPS pays acute-care hospitals a predetermined rate per discharge based on the assigned MS-DRG. The annual IPPS rule updates rates, NTAPs, and DRG reassignments - closely watched by MedTech.

    What this means in practice

    Comments to the annual IPPS proposed rule are a key advocacy lever for new device coverage and payment.

    Primary references

    3 sources
    Link health: 2 verified 1 bot-blocked· last checked 2026-05-09
    CMS·1AMA·1AdvaMed·1
    1. 1
      CMS IPPS
      Verified
      CMScms.gov
    2. 2
      AMA CPT Resources
      Bot-blocked
      AMAama-assn.org
    3. 3
      AdvaMed - Payment & Coverage
      Verified
      AdvaMedadvamed.org

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