CHA News Article

CMS Issues FFY 2018 Inpatient Psychiatric Facility PPS Payment Update
IPF quality reporting updates included in IPPS final rule

The Centers for Medicare & Medicaid Services (CMS) has issued the attached notice updating the federal fiscal year (FFY) 2018 inpatient psychiatric facility (IPF) prospective payment system (PPS). CMS notes a 2.6 percent IPF market basket update, reduced by a productivity adjustment of 0.6 percent and an additional 0.75 percent reduction as required by law, for a final market basket update of 1.25 percent. In addition, CMS further reduces payments to IPFs by 0.26 percent as a result of updates to the outlier fixed-dollar loss threshold amount. CMS estimates payments to IPFs will increase by 0.99 percent, or approximately $45 million, compared to FFY 2017.

In addition, CMS finalized changes to the IPF Quality Reporting Program (QRP) as part of the FFY 2018 inpatient prospective payment system final rule. CMS is not finalizing its proposal to add an additional measure, Medication Continuation Following Inpatient Psychiatric Discharge (NQF #3205), to the IPF QRP. CHA expressed concerns with the measure in its comments on the proposed rule and is pleased that CMS has not finalized the measure. 

Finally, CMS seeks public comment on reducing regulatory burden in the IPF setting. Until early October, suggestions will be accepted on improvements to increase quality of care; lower costs; improve program integrity; and make the health care system more effective, simple and accessible. CHA will issue a more detailed summary of the payment update and IPF QRP provisions of the IPPS final rule in the coming weeks.