CMS announces Inpatient Psychiatric Facilities PPS update proposal for FY 2019

CMS has issued a proposal to update the Medicare Inpatient Psychiatric Facilities (IPFs) Prospective Payment System (PPS) for fiscal year 2019. CMS estimates that the total impact of its proposed changes for FY 2019 compared to FY 2018 will be a net increase of approximately $50 million. This reflects a $60 million increase from the update to the payment rates (+$130 million from the first quarter 2018 IGI forecast of 2.8 percent, -$40 million for the multifactor productivity adjustment of 0.8 percentage point, and -$30 million for another adjustment of 0.75 percentage point), as well as a $10 million decrease as a result of the update to the outlier threshold amount. This results in a net increase of 1.25 percent. For more information, see today’s second Financial Feature.

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