Bayesian Health’s sepsis monitoring technology has cleared a major barrier between clinical innovation and hospital adoption. Medicare approved a New Technology Add-on Payment for the FDA-cleared device, creating a dedicated reimbursement pathway that begins October 1, 2026.
That date matters because hospitals using the continuous AI sepsis monitor can receive additional Medicare payment for eligible inpatient cases. The approval gives Bayesian Health’s product a direct place inside the hospital payment system, turning the technology’s use into a claim-by-claim opportunity across adult Medicare fee-for-service inpatient admissions.
A New Payment Pathway for Continuous Sepsis Monitoring
The approval came through the Centers for Medicare and Medicaid Services’ fiscal year 2027 Inpatient Prospective Payment System final rule. The final rule was displayed on July 31, 2026, and published on August 4, 2026, with new rates taking effect for discharges on or after October 1, 2026.
Bayesian Health’s sepsis flagging device received FDA 510(k) clearance on May 12, 2026, after receiving the FDA’s earlier Breakthrough Device Designation in May 2026. The Medicare decision now makes Bayesian’s product the first continuous sepsis monitoring technology with both FDA clearance and a dedicated Medicare reimbursement pathway.
Hospitals can bill for eligible use across an estimated 739 diagnosis-related groups. Those groups represent roughly 97 percent of all diagnosis-related groups in the inpatient prospective payment system, giving the payment pathway broad reach across eligible hospital cases.
- Additional Medicare payment begins October 1, 2026.
- Eligible discharges can qualify for up to $61.84 per case.
- Hospitals can bill across an estimated 739 diagnosis-related groups.
- The eligible groups cover roughly 97 percent of all diagnosis-related groups in the inpatient prospective payment system.
- The pathway remains in place for up to three years.
The add-on payment applies claim by claim, with no separate authorization. That structure gives hospitals a clear process for seeking payment when the technology is used in an eligible inpatient case, rather than requiring a separate approval for each use.
Why NTAP Matters for Hospital Technology
Standard hospital payment rates are built from historical claims data. That creates a challenge for new technologies, because their costs and clinical use may not be reflected in older diagnosis-related group rates.
New Technology Add-on Payment, or NTAP, closes that gap with a temporary add-on payment layered on top of the standard diagnosis-related group payment. The pathway remains available for up to three years, giving a qualifying technology time to enter the payment system while hospitals use it in eligible cases.
The payment itself has limits. Add-on payments are capped at the lesser of 65 percent of the technology’s cost or 65 percent of the amount by which case costs exceed the standard payment. For eligible discharges involving Bayesian Health’s sepsis monitoring technology, the add-on payment can reach up to $61.84 per case.
That combination of broad eligibility and a defined payment cap gives hospitals a specific financial framework for using the device. The technology does not replace the standard diagnosis-related group payment; the NTAP amount is added on top of it when the claim meets the requirements.
How Medicare Selects Technologies for Add-On Payments
CMS determines which technologies receive add-on payments through an annual application process. The guidance sets out three eligibility criteria: the technology must be new, it must be costly enough that the standard diagnosis-related group rate is inadequate, and it must demonstrate substantial clinical improvement over existing options.
Devices in the FDA’s Breakthrough Devices Program may qualify through an alternative pathway that does not require demonstrating substantial clinical improvement. Bayesian Health’s device received the FDA’s Breakthrough Device Designation in May 2026, alongside its FDA 510(k) clearance on May 12, 2026.
This connection between FDA recognition and Medicare payment rules helps explain the importance of the decision. FDA clearance establishes that the device meets the applicable regulatory pathway, while NTAP approval creates a temporary mechanism for additional Medicare reimbursement when eligible hospitals use it.
Starting October 1, 2026, hospitals will have the opportunity to bill for the continuous AI sepsis monitor across adult Medicare fee-for-service inpatient admissions. With payment available across an estimated 739 diagnosis-related groups and the pathway lasting up to three years, Bayesian Health’s technology is moving into a new phase—one where clinical deployment and reimbursement can advance together.
