CMS Releases Proposed Inpatient Psychiatric Facilities PPS Update for FY 2020

CMS has issued a proposed rule to update the Medicare Inpatient Psychiatric Facilities (IPFs) Prospective Payment System (PPS) for Fiscal Year 2020. CMS says the overall economic impact of the proposed rule is an estimated $75 million in increased payments to IPFs during FY 2020. The Affordable Care Act (ACA) requires a reduction to the market basket of a 10-year moving average Multi Factor Productivity (MFP) rate. CMS says this amount is estimated to be 0.5 percent. In addition, the FY 2020 market basket update is further reduced by 0.75 percentage point as also required by the ACA. For more details, see today’s third Financial Feature.

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