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An Analysis and Commentary on Federal Health Care Issues by Larry Goldberg

CMS Releases Proposed Inpatient Psychiatric Facilities PPS Update for FY 2020

The Centers for Medicare and Medicaid Services (CMS) have issued a proposed rule to update the Medicare Inpatient Psychiatric Facilities (IPFs) Prospective Payment System (PPS) for Fiscal Year (FY) 2020.

The proposal would update the prospective payment rates, the outlier threshold, and the wage index. Additionally, the proposed rule would revise and rebase the IPF market basket to reflect a 2016 base year and use the concurrent hospital wage data as the basis of the IPF wage index rather than using the prior year’s hospital wage data. Finally, the proposed rule proposes updates to the Inpatient Psychiatric Facility Quality Reporting (IPFQR) Program.

The rule is to be published in the April23rd Federal Register. A “display” copy of the 156-page document can be downloaded at: https://s3.amazonaws.com/public-inspection.federalregister.gov/2019-07884.pdf. This link will change upon publication.

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