Medicare Program; FY 2027 Inpatient Psychiatric Facilities Prospective Payment System-Rate Update
What happened
Signed by Donald Trump and issued by the Centers for Medicare & Medicaid Services (CMS), this final rule updates payment rates and the outlier threshold for Medicare inpatient psychiatric facilities (IPFs) for discharges between October 1, 2026, and September 30, 2027. It increases the Federal per diem base rate from $892.87 to $912.40 and the electroconvulsive therapy (ECT) payment per treatment from $673.85 to $688.59. The rule also establishes a 20% cap on outlier payments for IPFs with 50 or more stays per year, implements a standardized IPF patient assessment instrument (IPF-PAI), and removes two quality measures.
Why it matters
This rule directly impacts how psychiatric hospitals and units are paid by Medicare, potentially affecting their financial stability and the services they can offer. The new patient assessment instrument aims to standardize patient evaluation across facilities. Removing two quality measures could streamline reporting requirements for providers.
Who it affects
- ›Medicare-certified inpatient psychiatric facilities
- ›Psychiatric hospitals and units of acute care hospitals
- ›Patients receiving inpatient psychiatric services
- ›Healthcare providers in psychiatric facilities
The receipts are official. The summary is ours.
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