NTAP Connection

Connecting Innovation and Hospital Care: The New Technology Add-On Payment Program (NTAP).

Welcome to the forefront of healthcare innovation. The NTAP has been a critical component in facilitating the adoption of new technologies within the healthcare sector.

The modern ICU Did not become filled with remarkable life-saving technologies by accident. All of these technologies need to be brought to market, creating immediate benefits for the patients, integrated with Hospital workflows, and integrative with Hospital financial goals.

The payment model to support innovative technology is what the NTAP program addressed. For years, this program did not include inpatient psychiatric needs.

This program, since 2000, has been helping savvy innovators bring their products to Acute Care Settings. The CMS 2024 proposed update allows a broader range of settings–including inpatient psychiatry--to utilize innovative technologies and benefit from additional payments available for doing so.

The Future of Care Is Here: NTAP CONNECT.

NTAP, or New Technology Add-on Payment, is a program established by the Centers for Medicare & Medicaid Services (CMS). Its goal is to support hospitals that implement new and costly technologies, ensuring that these innovations are accessible to patients.

By providing additional payments to hospitals, NTAP helps to alleviate the financial burden associated with adopting groundbreaking technologies, which are often not adequately reimbursed under the standard payment systems.

Understanding the NTAP is crucial. In hospital settings, it allows additional payment, so being on the cutting edge of care makes financial sense.

For innovators, Understanding the NTAP allows New and Better to translate into a go-to-market motion that succeeds.

Innovators need a bridge to get to the bedside. Hospitals need to understand innovative treatments’Return on Investment (ROI).

How does it impact the cost of care?

The NTAP program plays a pivotal role in moderating the cost of care. By financially supporting hospitals in adopting new technologies, it helps to accelerate the use of innovative treatments and procedures. Medicare’s system shares the risk for new treatments with hospitals. Experts in managing hospitals don’t build innovative treatments; innovators don’t build their pricing with hospital NTAP Compliance requirements in mind.

Solving this fundamental misunderstanding–what innovations make sense in which care settings?-- was a core problem in getting innovation to the bedside. That is why we built NTAP Connect.


Adopting new technologies in healthcare can be expensive, particularly when they represent a significant patient care advancement over existing treatments. Costs can include purchasing the technology, training staff, implementation, and compliance.

The NTAP program helps offset these costs by providing additional payments to hospitals for cases involving eligible new technologies. This is over and above the standard Medicare Severity Diagnosis Related Group (MS-DRG) payment, allowing hospitals to manage innovation’s financial impact.

Calculated appropriately, hospitals can add value without adding financial risk to the system, and innovations can help patients with new and better solutions. The risk-sharing component of NTAP, however, creates issues that need to be mitigated.

Why Now?

While the NTAP program is designed to facilitate the adoption of new technologies, there can be a delay between developing a technology and its inclusion in the program. Inpatient psychiatry has historically been excluded from NTAP product deployment. With NTAP CONNECT, your teams will master the “Go-To-Bedside”Motion for new technologies in a way that makes sense in your setting. Payment modes are changing–no need to be left behind!

Specific requirements for technologies mean a rigorous application process. Hospitals need to plan accordingly and be prepared for a waiting period before they can start receiving additional payments.

Total Financial Impact

The total financial impact of the NTAP program on a hospital can be substantial. Not only does it provide additional revenue to cover the costs of new technologies, but it also helps improve patient outcomes, which can further impact the hospital’s operational budgets. Efficient use of new technologies can lead to decreased readmission rates, improved patient satisfaction, and a stronger market position for the hospital.


The NTAP program comprises several key components:

  1. Eligibility Criteria: To qualify, the technology must be new, high-cost, and represent a substantial clinical improvement over existing services.
  2. Application Process: Hospitals must apply for NTAP by submitting clinical and cost data to CMS.
  3. Payment Calculation: The additional payment is typically 65% of the cost of the new technology or 65% of the amount by which the costs exceed the standard payment.
  4. Duration: NTAP payments are usually made two to three years after the technology is implemented.


Optimizing NTAP for Your Hospital. Successfully navigating the complexities of the NTAP program requires a strategic approach. Our NTAP consulting services are here to help. We offer

  1. Eligibility Assessment: Determine if your technology meets the NTAP criteria.
  2. Application Assistance: Expert guidance through the NTAP application process.
  3. Financial Strategy: Develop a financial plan to maximize NTAP benefits.
  4. Continuous Support: Ongoing assistance with compliance and reapplication.
  5. Working Together with partner health systems to meet the regulatory needs for usage, including HEDIS, MIPS, and other compliance and reporting standards–without undue expense.

Partner with us to unlock the full potential of NTAP for your healthcare institution