US · guidance
CMS Pub. 100-04, ch. 3, § 190.4.4
Calculating the Federal Payment Rate
To calculate an IPF PPS payment, follow the steps below:
1 - Multiply the Federal per diem base rate by the labor share.
2 - Multiply the resulting amount by the appropriate wage index factor.
3 - Multiply the Federal per diem base rate by the non-labor share.
4 - Multiply the resulting amount from this by any applicable cost-of-living adjustment
(COLA) (Alaska or Hawaii).
5 - Add the adjusted labor portion of the Rate to the adjusted non-labor portion of the Rate
(Add the results of steps 2 and 4). This is the Federal rate.
You must multiply this sum (step 5) by all applicable facility and patient level adjustment
factors described in §§190.5 and 190.6, to calculate the final payment.
.
History
(Rev. 12830; Issued: 09-09-24; Effective: 10-01-24; Implementation: 10-07-24)
Provenance
- Source
- cms.gov
- Retrieved
- 2026-08-25
- Edition
- iom-2026-08-25
- Content hash
6e544959bbb24f4a538d0bb59128d7776f57b6d724004695dc2344c4d4c8c47a
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