CMS Releases FFY2021 IPF PPS Proposed Rule

The Centers for Medicare & Medicaid Services (CMS) has released its proposed rule for the federal fiscal year (FFY) 2021 inpatient psychiatric facility (IPF) prospective payment system (PPS). The provisions in the proposed rule, if finalized, would be effective Oct. 1, 2021.

CMS proposes to increase IPF payments by 2.4% — or $100 million — in FFY 2021, which reflects a 3% market-basket increase and negative 0.4 percentage point productivity adjustment. Additionally, CMS estimates total estimated payments to IPFs to decrease 0.2 percentage points due to updating the outlier threshold amount.

In the proposed rule, CMS proposes to adopt the most recent Office of Management and Budget statistical area delineations. CMS proposes that all IPF providers negatively impacted in their wage index be capped at a 5% decrease for FFY 2021.

CMS is not proposing any changes to the IPF Quality Reporting Program.

SDAHO is currently reviewing the proposed rule and will provide a brief summary along with impact in the coming weeks for members. Comments are due to CMS by 2 p.m. (PT) on June 9, available is the CMS Fact Sheet.​