Medicaid Inpatient Hospital Services Payment Policy

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March 2016

State Medicaid programs are required to cover inpatient hospital services, that is, services and items furnished by a hospital for the care and treatment of a patient who is admitted to a hospital. This issue brief provides background on how states determine payments for inpatient hospital services. To see each state’s fee-for-service inpatient hospital payment policy, including how individual states set their payment rates and the various adjustments and supplemental payments they make, please visit State Medicaid Payment Policies for Inpatient Hospital Services.

Publication Type: Issue Briefs

Tags: cost-based reimbursement, diagnosis-related groups (DRGs), fee for service, hospitals, inpatient services, payment, prospective payment