FY 2023 Inpatient Psychiatric Facilities Prospective Payment System Proposed Rule Summary

On March 31, 2022, CMS released its proposed update to payment rates under the inpatient psychiatric facilities (IPF) prospective payment system (PPS) for fiscal year (FY) 2023 (CMS-1769-P). The proposed rule was published in the April 4, 2022 Federal Register (87 FR 19415). IPFs include psychiatric hospitals and psychiatric units of acute care hospitals or critical access hospitals. The FY 2023 IPF PPS proposed rule describes updates to IPF rates and payment adjustments and the IPF Quality Reporting Program. The public comment period on the proposed rule ends May 31, 2022. This proposed rule would also establish a permanent limit on decreases to the IPF wage index of 5 percent annually. There are also requests for information on the results of the data analysis of the IPF PPS facility and patient level and adjustments, as well as incorporating measures of health equity and disparities across CMS quality programs. The proposed changes in this rule would be effective for IPF discharges occurring during the FY beginning October 1, 2022, through September 30, 2023 (FY 2023).