The Centers for Medicare & Medicaid Services today issued a notice updating the payment rates for inpatient psychiatric facilities for fiscal year 2017. CMS makes a net payment increase of 2.2%, or $100 million, compared to FY 2016. This includes a 2.8% market-basket, offset by cuts of 0.3% for productivity and a further Affordable Care Act-mandated cut of 0.2%, as well as a decrease of 0.1% for high-cost outlier cases. CMS also completes its transition to the most recent labor market areas issued by the Office of Management and Budget. Specifically, the agency adopted these new areas for the FY 2016 IPF prospective payment system wage index, but implemented a one-year transition. In addition, when implementing these new areas, several IPFs changed from rural to urban, thus losing eligibility for the rural payment add-on of 17%. In the FY 2016 IPF PPS final rule, CMS implemented a policy to gradually phase out the rural adjustment for these IPFs over three years. The affected IPFs received two-thirds of the rural adjustment in FY 2016, and will now receive one-third of the rural adjustment for FY 2017. CMS anticipates completing the phase-out in FY 2018. The updates will take effect Oct. 1.

Related News Articles

News
The AHA April 29 urged majority and minority leaders in both the Senate and House to not make disruptive policy changes to Medicaid and other coverage options…
Headline
The Supreme Court April 29 ruled 7-2 in favor of the Department of Health and Human Services in a case that challenged how HHS applied Congress’ formula for…
Headline
The House Energy and Commerce Committee held a markup April 29 where it advanced the AHA-supported SUPPORT Act (H.R. 2483). The legislation would reauthorize…
Headline
The AHA May 5 will award Mary Beth Kingston, Ph.D., its 2025 Award of Honor during the AHA Annual Membership Meeting in Washington, D.C. Kingston, an outspoken…
Blog
Public
In today’s rapidly evolving health care landscape — where patient outcomes and safety are non-negotiable top priorities — health systems and their staff are…
Headline
During the 2025 AHA Annual Membership Meeting in Washington, D.C., the AHA will present Melinda Estes, M.D., former president and CEO of Saint Luke's Health…