CHA News

CMS Issues FFY 2020 Inpatient Psychiatric Facility PPS Final Rule

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The Centers for Medicare & Medicaid Services (CMS) released its final rule for the federal fiscal year (FFY) 2020 inpatient psychiatric facility (IPF) prospective payment system (PPS).

CMS finalized a 2.9% market basket update, offset by reductions including a productivity adjustment of 0.4% and an Affordable Care Act-mandated 0.75% reduction, resulting in a payment increase of approximately 1.75%. After accounting for a $10 million decrease as a result of an update to the outlier threshold, CMS estimates overall payments will increase by $65 million compared to FFY 2019. CMS also finalized its proposals to revise and rebase the market basket to reflect a 2016 base year rather than a 2012 base year, and remove the one-year lag in wage index data used under the IPF PPS. As a result, CMS will apply the FFY 2020 pre-floor, pre-reclassified inpatient prospective payment system wage index data. 

For the IPF Quality Reporting Program, CMS finalized the adoption of one new measure — Medication Continuation Following Inpatient Psychiatric Discharge (National Quality Forum #3205) — beginning with the FFY 2021 payment determination and subsequent years.

The proposed rule is effective Oct. 1. Additional information is available in a CMS fact sheet.