CHA News Article

CMS Finalizes 2.5 Percent Increase for IPFs in FFY 2015

The Centers for Medicare & Medicaid Services (CMS) yesterday issued the attached federal fiscal year (FFY) 2015 inpatient psychiatric facility (IPF) prospective payment system final rule. The final rule will increase payments to IPFs by approximately 2.5 percent in FFY 2015 compared to FFY 2014. CMS also finalized a market-basket update of 2.9 percent for facilities that submit data on required quality measures, with a 2 percent reduction for facilities that do not submit quality data. Additionally, the final rule includes a productivity cut of 0.5 percent and an additional market-basket cut of 0.3 percent, as required by the Affordable Care Act, and an increase of 0.4 percent resulting from an updated outlier threshold.

CMS also finalized changes to the inpatient psychiatric facility quality reporting (IPFQR) program, including the addition of two new measures for the FFY 2016 IPFQR and four new measures for FFY 2017. The final rule is effective Oct. 1, 2014.