Medicare Inpatient Psychiatric Facility Rates to Increase by $45 Million in FY 2018

August 2017 ~

CMS has published a notice with comment period updating prospective payment system (PPS) rates for Medicare services furnished by inpatient psychiatric facilities (IPFs) during fiscal year (FY) 2018. CMS is soliciting comments on different methods and tactics in which it can “increase quality of care, lower costs improve program integrity, and make the health care system more effective, simple and accessible.”

CMS estimates that under the rule, Medicare payments to inpatient psychiatric facilities will rise by $45 million, or roughly 1% (when compared to FY 2017 levels).  This increase is based on 1.25% payment rate update, offset by a 0.26 percentage point reduction due to the outlier fixed-dollar loss threshold adjustment.

The FY 2018 IPF PPS per diem will rise from $761.37 in FY 2017 to $771.35 in FY 2018; providers that fail to meet quality data reporting requirements will receive a FY 2018 per diem rate of $756.11. The fixed dollar loss threshold amount also will increase, from $10,120 in FY 2017 to $11,425 in FY 2018.  The notice does not include substantive changes in policy.

CMS will accept comments until October 6, 2017.


Source(s): CMS Fact Sheet; Federal Register; Health Industry Washington Watch; American Hospital Association (AHA); Association of American Medical Colleges (AAMC);