Federal Register #2026-15588

CMS Final Rule: FY 2027 Payment Updates for Inpatient Psychiatric Facilities

This opportunity concerns a regulatory update from the Centers for Medicare & Medicaid Services (CMS) regarding payment rates for Inpatient Psychiatric Facilities (IPFs) under Medicare for FY 2027. - Government Buyer: - Department of Health and Human Services (HHS) - Centers for Medicare & Medicaid Services (CMS) - No OEMs or commercial vendors are involved, as this is a policy update, not a procurement. - Products/Services/Updates: - Updates to the Federal per diem base rate for IPFs (from $892.87 to $912.40) - Updates to Electroconvulsive Therapy (ECT) payment per treatment (from $673.85 to $688.59) - Adjusted rates for providers failing to report quality data (per diem: $894.56; ECT: $675.13) - Revised outlier fixed dollar loss threshold to $40,750 - Implementation of a standardized IPF Patient Assessment Instrument (IPFPAI) for all patients aged 18 and older - Voluntary reporting begins after the period of performance; mandatory reporting starts later - Removal of two quality measures (SUB2/2a and TOB3/3a) to reduce reporting burden - Unique/Notable Requirements: - 20% cap on outlier payments for IPFs with 50+ stays per year - Adjustments to labor-related share and wage index - Compliance thresholds for quality reporting will increase over time - No products or services are being solicited or awarded; this is a regulatory and payment system update.

Description

This final rule updates the prospective payment rates, the outlier threshold, and the wage index for Medicare inpatient hospital services provided by Inpatient Psychiatric Facilities (IPFs) for discharges during fiscal year 2027, effective October 1, 2026. It establishes a 20 percent cap on outlier payments for IPFs with 50 or more stays per year, implements a standardized patient assessment instrument, and removes two measures from the quality reporting program. The rule also includes technical rate setting updates such as adjustments to the Federal per diem base rate and electroconvulsive therapy payment rates. These changes aim to reflect cost pressures and improve payment accuracy for inpatient psychiatric care.

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