MS‑DRG 987: Non-Extensive O.R. Procedures Unrelated to Principal Diagnosis with MCC
What Medicare paid hospitals for MS‑DRG 987 in 2024: nationally, state by state and across hospitals.
In 2024 Medicare paid hospitals an average of $32,476 per discharge for MS‑DRG 987, across 1,872 fee-for-service discharges at 120 hospitals: 0.04% of all Medicare inpatient discharges and $60.8M in total, the 180th largest MS‑DRG by Medicare spending.
By state, the average ran from $21,177 in Oklahoma to $47,602 in California. Across hospitals, half were paid between $24,075 and $34,067 per case, and the median hospital $28,350; the payment moves with each hospital’s wage index, teaching and low-income share, and with outlier cases.
Hospitals charged $196,226 on average for these stays, 6.0 times what Medicare paid: charges are list prices, while Medicare pays a fixed amount per MS‑DRG.
What changed in FY2027
The rates for discharges from October 1, 2026 (MS‑DRG version 44) against FY2026.
| FY2026 | FY2027 | Change | |
|---|---|---|---|
| Relative weight | 3.4284 | 3.3515 | −2.2% |
| Geometric mean stay (days) | 7.8 | 7.7 | −0.1 |
| Average stay (days) | 11.1 | 10.8 | −0.3 |
- Not capped: the −2.2% 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)
$24,760.71
The FY2027 weight times the operating standardized amount and the capital rate ($6,848.00 + $539.95) at a wage index of 1.0. No IME, DSH, outlier or other hospital-specific adjustment, so it is not what any hospital is paid; price it at a hospital for that.
| MS‑DRG | Severity | Payment ($) | Step ($) |
|---|---|---|---|
| 987 | with MCC | 24,760.71 | — |
| 988 | with CC | 12,173.13 | −12,587.58 |
| 989 | without CC/MCC | 8,159.25 | −16,601.46 |
FY2027 inpatient rates: what else changed on October 1 · Price MS‑DRG 987 at a hospital
Paid per case, by state
| State | Paid per case | Discharges | Hospitals | Charges ÷ paid |
|---|---|---|---|---|
| Maryland* | $108,230 | 18 | 1 | 1.3× |
| California | $47,602 | 107 | 7 | 9.1× |
| Alabama | $42,972 | 25 | 2 | 6.5× |
| New York | $42,920 | 236 | 14 | 7.0× |
| Connecticut | $38,257 | 49 | 3 | 3.8× |
| Massachusetts | $35,947 | 124 | 8 | 3.7× |
| Oregon | $34,325 | 24 | 2 | 4.0× |
| Rhode Island | $33,569 | 12 | 1 | 4.2× |
| New Jersey | $32,314 | 86 | 6 | 8.2× |
| Pennsylvania | $31,387 | 108 | 8 | 8.0× |
| Minnesota | $31,340 | 61 | 3 | 3.8× |
| Texas | $30,531 | 115 | 7 | 6.1× |
| Nebraska | $30,180 | 15 | 1 | 4.8× |
| Ohio | $30,041 | 71 | 4 | 5.9× |
| Arizona | $29,786 | 20 | 1 | 4.1× |
| Wisconsin | $29,662 | 46 | 3 | 5.4× |
| Illinois | $29,419 | 115 | 7 | 5.3× |
| Georgia | $28,411 | 19 | 1 | 6.4× |
| Maine | $27,216 | 15 | 1 | 4.0× |
| North Carolina | $25,994 | 97 | 6 | 4.1× |
| Missouri | $25,913 | 53 | 4 | 4.6× |
| South Dakota | $25,012 | 12 | 1 | 5.5× |
| Michigan | $24,752 | 48 | 4 | 5.5× |
| Tennessee | $24,707 | 44 | 3 | 6.5× |
| Virginia | $24,342 | 34 | 2 | 4.2× |
| West Virginia | $24,060 | 14 | 1 | 6.8× |
| South Carolina | $23,805 | 30 | 2 | 6.8× |
| Kentucky | $23,562 | 35 | 2 | 5.9× |
| Delaware | $23,291 | 17 | 1 | 4.3× |
| Florida | $22,633 | 167 | 10 | 8.0× |
| New Mexico | $21,523 | 11 | 1 | 3.9× |
| Mississippi | $21,422 | 25 | 2 | 5.2× |
| Oklahoma | $21,177 | 19 | 1 | 5.2× |
| United States | $32,476 | 1,872 | 120 | 6.0× |
* 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 987.
| 10th percentile | $21,505 |
|---|---|
| 25th percentile | $24,075 |
| Median hospital | $28,350 |
| 75th percentile | $34,067 |
| 90th percentile | $47,332 |
Related analysis
Questions
What did Medicare pay for MS‑DRG 987 in 2024?
An average of $32,476 per discharge across 1,872 fee-for-service discharges at 120 hospitals, $60.8M in total.
Which state paid the most for MS‑DRG 987?
California, at $47,602 per case; Oklahoma paid the least, $21,177.
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.