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

CMS Finalizes Inpatient Psychiatric Facilities PPS Update for FY 2020

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

The rule will update the prospective payment rates, the outlier threshold, and the wage index. Additionally, the rule will 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 rule updates the Inpatient Psychiatric Facility Quality Reporting (IPFQR) Program.

These changes will be effective for IPF discharges beginning during the fiscal year (FY) from October 1, 2019 through September 30, 2020 (FY 2020).

The rule is to be published in the August 6 Federal Register. A “display” copy of the 166-page document can be downloaded at: https://s3.amazonaws.com/public-inspection.federalregister.gov/2019-16370.pdf This link will change upon publication.


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