Federal Register #CMS-1847-P

CMS Proposes FY 2027 Medicare Payment Updates for Inpatient Psychiatric Facilities

CMS is proposing regulatory updates to the Medicare payment system for Inpatient Psychiatric Facilities (IPFs): - Government Buyer: - Department of Health and Human Services (HHS) - Centers for Medicare & Medicaid Services (CMS) - Scope of Rulemaking: - Updates to the Inpatient Psychiatric Facilities Prospective Payment System (IPF PPS) for psychiatric hospitals and psychiatric units in acute care or critical access hospitals - 2.3% increase in payment rates for FY 2027 - Updates to outlier thresholds and wage indexes - 20% cap on outlier payments per facility - Adjustments to per diem base rates (from $892.87 to $912.58) - Updated payment for electroconvulsive therapy (ECT) treatments (from $673.85 to $688.73) - Facility-level adjustments for rural location, teaching status, and emergency department presence - Quality Reporting and Assessment: - Implementation of a standardized IPF Patient Assessment Instrument (IPFPAI) for patients aged 18 and older - Removal of two quality reporting measures related to alcohol and tobacco interventions - Estimated net increase of $7.2 million in costs for the IPF Quality Reporting Program - Notable Requirements: - Use of updated diagnostic coding and comorbidity adjustments - Phased implementation and quarterly data submission for IPFPAI - No specific OEMs or vendors are mentioned, as this is a regulatory and payment policy update, not a procurement.

Description

This proposed rule by the Department of Health and Human Services and the Centers for Medicare & Medicaid Services (CMS) proposes updates to the prospective payment rates, outlier threshold, and wage index for Medicare inpatient hospital services provided by Inpatient Psychiatric Facilities (IPFs), including psychiatric hospitals and excluded psychiatric units of acute care or critical access hospitals. The rule also proposes refinement of the IPF PPS outlier policy, implementation of a standardized IPF patient assessment instrument, and removal of two measures from the Inpatient Psychiatric Facilities Quality Reporting Program. These changes would be effective for discharges during the fiscal year beginning October 1, 2026, through September 30, 2027.

View original listing