What’s happening: The Centers for Medicare & Medicaid Services (CMS) issued its federal fiscal year (FFY) 2025 inpatient psychiatric facility (IPF) prospective payment system (PPS) final rule.
What else to know: Finalized payment rates are slightly higher than proposed, but still insufficient relative to input cost inflation.
In the final rule, CMS:
- Updates the IPF PPS payment rates by 2.8%, based on a IPF market basket increase of 3.3% less a 0.5 percentage point productivity adjustment
- Revises IPF PPS patient-level adjustment factors, including Medicare Severity Diagnosis Related Groups (MS–DRGs) assignment of the patient’s principal diagnosis, selected comorbidities, patient age, and a variable per diem adjustment
- Increases, in a budget-
- Clarifies the criteria to file an all-inclusive cost report and makes operational changes to ensure that only government-owned, Indian Health Service, or tribally-owned IPF hospitals are permitted to file an all-inclusive cost report for periods beginning on or after Oct. 1
- Adopts one new measure, the 30-Day Risk-Standardized All-Cause Emergency Department Visit Following an Inpatient Psychiatric Facility Discharge measure
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