CHA News

CMS Issues FFY 2020 Inpatient Psychiatric Facility PPS Proposed Rule

For CEOs, CFOs, Chief Legal Counsel, COOs

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

CMS proposes a 3.1 percent market basket update, offset by reductions including a productivity adjustment of 0.5 percent, an Affordable Care Act-mandated 0.75 percent reduction, and a decrease of 0.15 percent due to updating the high-cost outlier threshold. Notably, CMS proposes to revise and rebase the market basket to reflect a 2016 base year rather than a 2012 base year. Overall, CMS estimates its proposals will result in a payment increase of 1.7 percent, or approximately $75 million compared to FFY 2019.  

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

Comments are due by 2 p.m. (PT) on June 17. CHA is currently reviewing the rule and will issue a summary in CHA News in the coming weeks. A fact sheet is also available.