2027 FINAL RULES INPATIENT PSYCH
An Analysis and Commentary on Federal Health Care Issues by Larry Goldberg
CMS Releases Final FY 2027 Inpatient Psychiatric Facility PPS Update
The Centers for Medicare and Medicaid Services (CMS) are issuing a final rule that will update the Inpatient Psychiatric Facilities (IPF) Prospective Payment System (PPS) for fiscal year (FY) 2027, as required under section 1888(e)(4)(E) of the Social Security Act (the Act).
This final rule updates the prospective payment rates, the outlier threshold, and the wage index for Medicare inpatient hospital services provided by IPFs, which include psychiatric hospitals and excluded psychiatric units of an acute care hospital or critical access hospital.
The rule also limits an IPF’s outlier payments to no more than 20 percent of its total IPF PPS payments in a year, effective October 1, 2027, and provides for an exemption to that limit for IPFs with fewer than 50 stays per year. Lastly, the rule implements a standardized IPF patient assessment instrument and removes two quality measures.