CHA News Article

CMS Issues FFY 2021 IPF PPS Final Rule
For CFOs, behavioral health directors, government relations

The Centers for Medicare & Medicaid Services (CMS) has issued its federal fiscal year (FFY) 2021 inpatient psychiatric facility (IPF) prospective payment system (PPS) final rule. CMS finalized an overall payment increase of 2.3% — approximately $95 million — for IPFs, compared to FFY 2020.

Notably, the final payment update is less than CMS’ proposed increase of 3%, which the agency said is due to “slower anticipated compensation growth for both health-related and other occupations as labor markets are expected to be significantly impacted during the recession that started in February 2020.” The final rule is effective Oct. 1.  

CMS also finalized its proposal to adopt revised Office of Management and Budget statistical area delineations. In addition, CMS finalized updates to the psychiatric hospital Medicare conditions of participation to allow advanced practice providers — including physician assistants, nurse practitioners, psychologists, and clinical nurse specialists — to operate within the scope of practice allowed by state law by documenting progress notes in the medical record of patients for whom they are responsible, receiving services in psychiatric hospitals. 

detailed summary of the final rule, prepared by Health Policy Alternatives, is available for CHA members.  

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