Final answer:
Children's hospitals are an example of facilities exempt from the Inpatient Prospective Payment System (IPPS). Other hospitals that are often exempt include psychiatric hospitals, rehabilitation hospitals, and certain cancer hospitals.
Step-by-step explanation:
An example of a type of hospital that is exempt from the Inpatient Prospective Payment System (IPPS) includes hospitals for children. Other facilities that are often exempt from IPPS include psychiatric hospitals, rehabilitation hospitals, long-term care hospitals, and certain cancer hospitals. These types of facilities are typically reimbursed under alternative payment systems that better match the unique services they provide and the populations they serve.