Back to archive page
CHA News

CMS Issues FY 2022 Inpatient Psychiatric Facility Prospective Payment System Proposed Rule

For CFOs, behavioral health executives, quality leaders

The Centers for Medicare & Medicaid Services (CMS) has issued its proposed rule updating the inpatient psychiatric facility (IPF) prospective payment system (PPS) for fiscal year (FY) 2022. Comments on the proposed rule are due by 2 p.m. (PT) on June 7.

CMS proposes an annual payment update of 2.1% to IPFs in FY 2022, which it estimates will increase overall payments by $90 million compared to FY 2021. CMS also proposes changes to its IPF PPS teaching policy to account for displaced residents from the closure of IPF hospitals and teaching programs, which will align with policies previously finalized in the FY 2021 inpatient prospective payment system final rule.

CMS also proposes several changes to the IPF quality reporting program, and seeks comments via a request for information (RFI):

  • COVID-19 Vaccination Coverage Among Healthcare Personnel (HCP) Measure: CMS proposes to add a new measure that would require IPFs to report COVID-19 HCP vaccinations in their facilities beginning with the FY 2023 payment determination.
  • Follow-up After Psychiatric Hospitalization Measure: Beginning with FY 2024, CMS proposes to add a new claims-based measure that would expand on and replace the current Follow-up After Hospitalization for Mental Illness measure. The new measure would include patients with substance use disorder and expand the provider types that can provide follow-up care to include primary care providers. 
  • Removal of IPF Quality Reporting Program Measures: CMS proposes to remove three measures beginning with the FY 2024 payment determination, including Alcohol Use Brief Intervention Provided or Offered and Alcohol Use Brief Intervention, Tobacco Use Treatment Provided or Offered and Tobacco Use Treatment, and Timely Transmission of Transition Record (Discharges from an Inpatient Facility to Home/Self Care or any Other Site of Care). 
  • Transition to Patient-Level Reporting for Chart-Abstracted Measures: CMS proposes to transition from aggregate reporting to patient-level reporting for chart-abstracted measures. Under the proposed rule, patient-level reporting would be voluntary for FY 2023 and required by FY 2024.  
  • RFI on Addressing Health Equity: CMS seeks input on ways to attain health equity for all patients through policy solutions. Specifically, CMS requests comments on potential stratification of quality measure results by dual eligibility and other social risk factors in facility-specific reports, ways to improve demographic data collection, and the creation of a facility equity score to synthesize results across multiple measures and social risk factors. 

Additional information is available in a CMS fact sheet.