MS‑DRG 163: Major Chest Procedures with MCC

What Medicare paid hospitals for MS‑DRG 163 in 2024: nationally, state by state and across hospitals.

Paid per case$37,5862.5× the all-DRG average

Discharges9,2240.19% of all Medicare discharges

Total paid$346.7M58th largest MS‑DRG by spending

Hospitals432in 49 states and DC

Charges ÷ paid5.7×$214,895 average charge

Relative weight4.4892FY2027, 5.9-day geometric mean stay; FY2026 4.4818 (+0.2%)

In 2024 Medicare paid hospitals an average of $37,586 per discharge for MS‑DRG 163, across 9,224 fee-for-service discharges at 432 hospitals: 0.19% of all Medicare inpatient discharges and $346.7M in total, the 58th largest MS‑DRG by Medicare spending.

By state, the average ran from $25,572 in Alabama to $56,179 in California. Across hospitals, half were paid between $29,866 and $40,329 per case, and the median hospital $34,461; the payment moves with each hospital’s wage index, teaching and low-income share, and with outlier cases.

Hospitals charged $214,895 on average for these stays, 5.7 times what Medicare paid: charges are list prices, while Medicare pays a fixed amount per MS‑DRG.

See MS‑DRG 163 on the interactive map Price an MS‑DRG 163 claim at any hospital Every MS‑DRG

What changed in FY2027

The rates for discharges from October 1, 2026 (MS‑DRG version 44) against FY2026.

MS‑DRG 163, FY2026 and FY2027
	FY2026	FY2027	Change
Relative weight	4.4818	4.4892	+0.2%
Geometric mean stay (days)	6.3	5.9	−0.4
Average stay (days)	8.7	8.3	−0.4

Not capped: the +0.2% is CMS’s yearly recalibration of every weight from recent claims and cost data.
Name, MDC and transfer status are unchanged.

FY2027 national base payment (illustration)

$33,165.99

The FY2027 weight times the operating standardized amount and the capital rate ($6,848.00 + $539.95) at a wage index of 1.0. No IME, DSH, outlier or other hospital-specific adjustment, so it is not what any hospital is paid; price it at a hospital for that.

FY2027 national base payment across the severity levels of MS‑DRG 163
MS‑DRG	Severity	Payment ($)	Step ($)
163	with MCC	33,165.99	—
164	with CC	18,585.87	−14,580.12
165	without CC/MCC	14,254.31	−18,911.68

FY2027 inpatient rates: what else changed on October 1 · Price MS‑DRG 163 at a hospital

Paid per case, by state

MS‑DRG 163 by state, 2024
State	Paid per case	Discharges	Hospitals	Charges ÷ paid
California	$56,179	672	34	7.2×
Maryland*	$51,634	104	6	1.1×
District of Columbia	$48,374	53	2	4.2×
New York	$47,973	542	19	5.6×
Massachusetts	$47,453	347	10	3.1×
Rhode Island	$46,289	18	1	2.8×
New Hampshire	$44,407	37	2	3.9×
New Mexico	$43,393	32	2	3.3×
Connecticut	$42,898	73	4	3.4×
Washington	$42,724	202	11	5.2×
Minnesota	$41,503	174	7	3.7×
Oregon	$40,678	70	4	3.4×
Alaska	$40,049	18	1	10.8×
New Jersey	$39,615	255	11	5.4×
Pennsylvania	$37,459	374	19	7.1×
Arizona	$37,234	253	15	5.8×
Illinois	$37,074	363	17	4.6×
Nebraska	$36,789	121	5	4.2×
Utah	$35,741	86	5	3.8×
Hawaii	$35,738	15	1	3.9×
Maine	$35,726	15	1	6.2×
Missouri	$35,479	231	13	4.9×
Delaware	$35,463	36	2	4.3×
Wisconsin	$35,312	141	4	3.7×
Georgia	$35,145	157	8	6.2×
Nevada	$35,064	84	4	12.8×
Michigan	$34,658	206	14	3.9×
North Carolina	$34,401	250	11	4.3×
Montana	$34,202	63	2	2.4×
Colorado	$34,042	133	8	7.8×
West Virginia	$33,955	86	4	4.9×
Virginia	$33,655	254	11	4.9×
Texas	$33,359	805	39	8.4×
Idaho	$33,302	62	4	6.0×
Indiana	$33,073	233	9	5.0×
South Carolina	$32,572	238	10	6.1×
Florida	$32,425	742	32	7.8×
Ohio	$32,097	359	16	5.1×
Kansas	$32,075	106	4	6.6×
South Dakota	$32,052	78	4	4.6×
Oklahoma	$31,453	142	7	6.8×
Iowa	$31,058	88	4	4.0×
Arkansas	$30,729	171	9	3.9×
North Dakota	$30,639	44	2	3.6×
Kentucky	$30,524	155	8	6.1×
Louisiana	$30,265	43	2	4.5×
Tennessee	$29,369	310	13	4.5×
Mississippi	$28,898	67	4	4.5×
Vermont	$27,204	21	1	4.9×
Alabama	$25,572	95	6	6.5×
United States	$37,586	9,224	432	5.7×

* Maryland hospitals are paid under the state’s all-payer model, not the IPPS, so Maryland is left out of the state range above.

How much hospitals vary

Each hospital’s own average Medicare payment for MS‑DRG 163.

10th percentile	$27,518
25th percentile	$29,866
Median hospital	$34,461
75th percentile	$40,329
90th percentile	$48,160

Related analysis

Transfers and the per-diem rule: when a short stay pays less than the full DRG · Inpatient DRG
DRG validation and the single-MCC claim: when one code moves the payment · Payment integrity

The same condition at other severities

164Major Chest Procedures with CC · $20,436
165Major Chest Procedures without CC/MCC · $14,964

Nearby MS‑DRG numbers

Questions

What did Medicare pay for MS‑DRG 163 in 2024?

An average of $37,586 per discharge across 9,224 fee-for-service discharges at 432 hospitals, $346.7M in total.

Which state paid the most for MS‑DRG 163?

California, at $56,179 per case; Alabama paid the least, $25,572.

Where do these figures come from?

From the Medicare Inpatient Hospitals - by Provider and Service (data year 2024): the published hospital-by-DRG averages of Medicare fee-for-service inpatient discharges in 2024. Cells with fewer than 11 discharges are not published, so a hospital with a handful of cases is not counted. Average Medicare payment excludes the patient’s deductible and coinsurance.