CMS Issues IPPS and LTCH PPS Proposed Rule for Fiscal Year 2016.

Date posted: May 5, 2015

The Centers for Medicare & Medicaid Services (CMS) issued a proposed rule updating the fiscal year (FY) 2016 Hospital Inpatient Prospective Payment System (IPPS) and the Long-Term Care Hospital Prospective Payment System (LTCH PPS).  The proposed rule increases the FY 2016 operating payment rates by 1.1 percent for general acute care hospitals participating in the Hospital Inpatient Quality Reporting (IQR) Program and that meet meaningful electronic health record (EHR) use requirements.

Highlights of the proposed rule include:

  • Proposed expansion of the Bundled Payments for Care Improvement Initiative;
  • New and modified requirements for eligible hospitals and critical access hospitals participating in the EHR Incentive Programs and the IQR program;
  • Measures and policy updates to the IQR Program; the Hospital Value-Based Purchasing Program, the Hospital Acquired Conditions Reduction Program, the Hospital Readmissions Reduction Program; the LTCH Quality Reporting Program, and the PPS-Exempt Cancer Hospital Quality Reporting Program.

The proposed rule would apply to discharges occurring on or after October 1, 2015.  CMS will accept comments on the proposed rule until June 16, 2015.

The proposed rule is available at:

The CMS fact sheet is available at:

Medicare Program; Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals and the Long-Term Care Hospital Prospective Payment System Policy Changes and Fiscal Year 2016 Rates; Revisions of Quality Reporting Requirements for Specific Providers, including Changes Related to the Electronic Health Record Incentive Program; Proposed Rule; 80 Fed. Reg. 24323 (April 30, 2015).

The Centers for Medicare & Medicaid Services.  “Fiscal Year 2016 proposed Inpatient and Long-term Care Hospital policy and payment changes (CMS-1632-P).”  Fact Sheet.  17 Apr. 2015.

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