CMS issues FY 2021 proposed rule for inpatient psychiatric facilities

The Centers for Medicare & Medicaid Services April 10 issued a proposed rule for the inpatient psychiatric facility prospective payment system for fiscal year 2021. CMS proposes to increase IPF payments by a net 2.4%, equivalent to $100 million, in FY 2021.

The 2.4% payment update is a reflection of a 3.0% market-basket update minus a productivity adjustment of 0.4 percentage points, an additional 0.2 percentage point offset for the outlier fixed-dollar loss threshold amount.

In its press release announcing the rule, CMS acknowledged that the entire health care system is focused on responding to the COVID-19 public health emergency, and thus the proposed rule only includes proposals required by statute that affect Medicare payment to IPFs. CMS will accept comments on this rule through June 9.

See the AHA Regulatory Advisory for more details on the proposed rule.