Hospitals and Hospital Units Excluded From the Inpatient

3100 - Hospitals and Hospital Units Excluded From the Inpatient Prospective Payment System (IPPS) - Introduction (Rev. 198, Issued: 01-17-20, Effective: 01-17-20, Implementation: 01-17-20) The IPPS determines Medicare payment for operating costs and capital-related costs of inpatient hospital services provided in short-term acute care hospitals. Certain hospitals and special hospital units may be excluded from this system and paid at a different Medicare reimbursement rate. These IPPS-excluded hospitals and units have their own specific reimbursement criteria. Title 42 CFR 412.20 through 412.29 describes the criteria under which these hospitals and units are excluded from IPPS.