CMS issues FY 2023 final rule for inpatient psychiatric facilities

The Centers for Medicare & Medicaid Services today issued a final rule for the inpatient psychiatric facility prospective payment system for fiscal year 2023. CMS finalized payment updates that will increase IPF payments by a net 2.5%, equivalent to $90 million, in FY 2023. The 2.5% payment update reflects the rounded result of a 4.1% market basket update minus a 0.3 percentage point productivity adjustment, and a 1.2 percentage point cut for outlier payments. CMS also finalizes its proposal to cap wage index decreases at 5% to mitigate instability in IPF PPS payments. CMS did not make any changes to the IPF Quality Reporting Program.