Hospital Coding Updates: An Insight on FY 2012 IPPS Rule

The final rule for FY 2012 will be effective in about a week's time.

Recently CMS issued a final rule that'll update Medicare payment policies and rates for hospitals in FY 2012, an August 1 CMS release notes. The rule will affect Medicare payments to general acute care hospitals and long-term care hospitals for inpatient stays, supports endeavors to promote ongoing improvements in hospital care that'll lead to better patient results while taking a look at long-term health care cost growth, the agency mentions.

According to CMS Administrator Donald M. Berwick, M.D, "The final rule continues a payment approach that encourages hospitals to adopt practices that reduce errors and prevent patients from acquiring new illnesses or injuries during a hospital stay."


The final rule makes changes to payment policies and rates for acute care hospitals paid under the Inpatient Prospective Payment System (IPPS); so also hospitals paid under Long Term Care hospital Prospective Payment System.


This rule also boosts the Hospital Inpatient Quality Reporting (IQR) Program by placing more emphasis on avoiding health care-associated infections in general acute care hospitals.

The final rule will be effective for discharges taking place on or after October 1, 2011.

Under the FY 2012 IPPS, the agency had proposed a year-over-year reduction of 0.5% in payments to acute care hospitals. But then the agency finalized a cut of 2.0%, a decrease from 2.9% in FY 2011. This translates to $1.13 billion more in hospital payments in financial year 2012 than what was received in the previous year.

For more hospital billing and coding updates, sign up for a good coding resource like SuperCoder. Such a site has all the essential tools and resources you need to put your inpatient coding on track. Its DRG coder helps you get all of the inpatient coding data and tools you need to boost your payments and help you walk the compliance line.