CMS final rule will update IPF payments by 2.5%

The Centers for Medicare & Medicaid Services July 31 issued the final rule for the inpatient psychiatric facility prospective payment system for fiscal year 2025. CMS will increase IPF payments by a net 2.5%, equivalent to $65 million, in FY 2025. This increase includes a market-basket update of 3.3% minus a productivity adjustment of 0.50 percentage points; it also accounts for an update to the outlier threshold so that estimated outlier payments will remain at 2.0% of total payments, resulting in a 0.3% decrease to aggregate payments. CMS also clarifies the eligibility criteria for filing all-inclusive cost reports and makes operational changes such that, beginning Oct. 1, 2024, only government or tribally-owned IPFs can file this type of cost report. For the IPF Quality Reporting Program, CMS will adopt one new quality measure on all-cause emergency department visits following IPF discharge. The agency did not finalize its proposal to require IPFs to submit patient-level quality data on a quarterly basis, and will retain the current annual requirement.

AHA members will receive more information on the rule.