2023 FINAL RULES Inpatient psych


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

CMS Issues Final FY 2023 Inpatient Psychiatric Facility PPS Update

The Centers for Medicare and Medicaid Services (CMS) have issued a final rule to update the Medicare Inpatient Psychiatric Facility (IPF) Prospective Payment System (PPS) for Fiscal Year (FY) 2023. 
CMS is finalizing the following; 

Adjusting the market basket update (4.1 percent) less a productivity adjustment of 0.3 percentage point resulting in a final IPF payment rate update of 3.8 percent for FY 2023. 
Establishing a permanent mitigation policy in order to smooth the impact of year-to-year changes in IPF payments related to decreases in a IPF wage index. 
The rule also updates: 

  • The IPF PPS Federal per diem base rate; 
  • The IPF PPS Federal per diem base rate for providers who failed to report quality data; 
  • The ECT payment per treatment; 
  • The ECT payment per treatment for providers who failed to report quality data; 
  • The labor-related share; 
  • The wage index budget-neutrality factor; 
  • The fixed dollar loss threshold amount. 

Two of the rules – Hospice and IPF —  have been published in the July 29 Federal Register.

FY 2023 Inpatient Psychiatric Facilities Prospective Payment System; Rate Update and Quality Reporting; Request for Information

The PDF file is at: https://www.govinfo.gov/content/pkg/FR-2022-07-29/pdf/2022-16260.pdf

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