Final Rule: FY 2023 Inpatient Psychiatric Facility Prospective Payment System

CMS finalized payment updates that will increase IPF payments by a net 2.5%, equivalent to $90 million, in FY 2023. The 2.5% payment update reflects the rounded result of a 4.1% market basket update minus a 0.3 percentage point productivity adjustment, and a 1.2 percentage point cut for outlier payments. CMS also finalized its proposal to cap wage index decreases at 5% to mitigate instability in IPF PPS payments. CMS did not make any changes to the IPF Quality Reporting Program.