Inpatient Psychiatric Facilities Payment Update Issued for FY 2018

Posted on August 03, 2017

The Centers for Medicare & Medicaid Services (CMS) recently released a notice updating the Medicare fee-for-service payment rates for inpatient psychiatric facilities (IPFs) for fiscal year (FY) 2018.

Excluding budget-neutrality adjustments, payments to IPFs will increase by a net 1 percent. This figure is based on a 2.6 percent marketbasket update offset by cuts of 0.6 percent for productivity and 0.75 percent mandated by the Affordable Care Act, plus a decrease of 0.26 percent for high-cost outlier cases. The CMS also completes its transition to the most recent labor market areas issued by the Office of Management and Budget. 

In the FY 2016 IPF prospective payment system final rule, the CMS implemented a policy to gradually phase out the rural adjustment for the IPFs over three years. The affected IPFs received two-thirds of the rural adjustment in FY 2016, one-third of the rural adjustment for FY 2017, and will not receive an adjustment in FY 2018.

Featured in the Monday Report. Click to view the full edition.The updates will take effect Oct. 1. Over the next several weeks, the MHA will provide further information, including facility-specific impact analyses. Members with questions should contact Vickie Kunz at the MHA.

Tags: Medicare, CMS, IPF, FFS

Posted in: Member News


Media inquiries: contact Laura Wotruba at (517) 703-8601. 

Other inquiries: email

Read the MHA policy on publication via MHA media.

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