On April 2, 2026, the Centers for Medicare & Medicaid Services (CMS) issued a proposal to update Medicare payment policies and rates for Inpatient Psychiatric Facilities (IPF) under the IPF Prospective Payment System (PPS) for fiscal year 2027.
CMS is proposing to update the IPF PPS payment rates by 2.3% and is modifying the outlier payment policy. CMS is proposing to cap outlier payments at the provider level so that the most expensive IPFs do not receive the majority of all available outlier payments. CMS is also proposing changes to the IPF quality reporting program measures. Comment by June 1.