PACT stands for Post-Acute Care Transfer. The PACT policy is part of Medicare's IPPS transfer-payment framework and can modify the normal full MS-DRG payment when a qualifying inpatient stay ends with an early transfer or discharge to specified post-acute settings.

CMS applies transfer-payment methodology when applicable conditions are met, including circumstances involving selected discharges to skilled nursing facilities, inpatient rehabilitation facilities, long-term care hospitals, psychiatric facilities, and certain home-health arrangements. For home health, the timing and relationship of post-discharge care can be relevant.

The policy exists because a short acute-care hospitalization followed by transfer to another care setting may not involve the same hospital resource utilization as a conventional discharge completing the expected course of inpatient treatment. Accordingly, the transferring hospital may receive a calculated transfer payment rather than the unrestricted full MS-DRG amount.

For CDI professionals, PACT illustrates why accurate discharge disposition and documentation can affect reimbursement even when the principal diagnosis, procedures, CCs, and MCCs are correctly captured.

CCDS Reference Topics: IPPS; MS-DRG reimbursement; discharge disposition; transfer payment policy.

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