Medicare Proposes Updates to Inpatient Psychiatric Facility Payment Policies

Comment by May 28. On March 28, the Centers for Medicare & Medicaid Services (CMS) issued a proposed rule to update Medicare payment policies and rates for the Inpatient Psychiatric Facilities Prospective Payment System (IPF PPS) for fiscal year (FY) 2025. The proposal increases payment rates by 2.7 percent, and proposes payment increases for stays involving the use of electroconvulsive therapy. CMS has also issued a request for information regarding facility level payment adjustment factors, including rural and teaching status as well as a potential new adjustment for safety net patient populations.

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