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Inpatient PPS PC Pricer

The Social Security Amendments of 1983 (Public Law 98-21) established the Prospective Payment System (PPS) for hospital inpatient services provided to Medicare beneficiaries. Under this system, a hospital is paid a fixed amount for each patient discharged in a particular treatment category or Diagnosis Related Group (DRG). This fixed amount is intended to cover the cost of treating a typical patient for a particular DRG. The PPS Pricer software, which will be released on a quarterly basis, calculates discharges from October 1 through September 30 for a given fiscal year.

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