LTCH PPS
The Long-Term Care Hospital Prospective Payment System is Medicare's payment methodology for eligible long-term care hospitals.
Updated
Under LTCH PPS, long-term care hospitals are reimbursed through a prospective payment structure based on patient classification and case characteristics, rather than cost-based reimbursement.
Payment reflects the higher acuity and extended length of stay typical of patients treated in long-term care hospitals, distinct from acute care payment methodologies.
In practice
Billers for LTCH facilities follow LTCH PPS classification rules, verify patient and stay criteria, and ensure documentation supports the appropriate payment tier for each discharge.
Commonly confused with
- MS-DRG: MS-DRG is the payment classification system for acute inpatient hospitals; LTCH PPS is specific to long-term care hospitals.
- IRF PPS: IRF PPS is the prospective payment system for inpatient rehabilitation facilities, a separate post-acute setting from long-term care hospitals.