The Centers for Medicare & Medicaid Services (CMS) will increase Medicare inpatient psychiatric facility (IPF) prospective payment system (PPS) payments by 1.5%, or $65 million, in fiscal year (FY) 2020 under a recently-published final rule. The final FY 2020 market basket increase is 2.9%, which is reduced by two statutory reductions for an IPF payment rate update of 1.75%. CMS also projects that total payments to IPFs will be further reduced by 0.23 percentage points due to the final update to the outlier fixed dollar loss threshold amount, which increases from $12,865 in FY 2019 to $14,960 in FY 2020 under the final rule. The IPF PPS federal per diem base rate will increase from $782.78 in FY 2019 to $798.55 in FY 2020, with a $782.85 per diem base rate for providers who fail to report quality data). The final rule also: rebases the IPF market basket using a 2016 base year (instead of 2012); updates IPF Quality Reporting Program requirements; and eliminates the current one-year lag in wage index data.
This article is presented for informational purposes only and is not intended to constitute legal advice.
