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2021 IPPS final rule sets the course for market-based MS-DRG methodology

CMS set the timer on transforming MS-DRGs in the recently released fiscal year (FY) 2021 IPPS final rule. The agency strongly signaled its wish to de-emphasize the role of the chargemaster and the cost-to-charge ratio (CCR) in MS-DRG rate setting and laid out a pathway to a methodology that would align traditional Medicare MS-DRG rates with Medicare Advantage (MA).

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