May 1, 2009

Medicare Program; Inpatient Psychiatric Facilities Prospective Payment System Payment Update for Rate Year Beginning July 1, 2009 (RY 2010); Notice

Released by the Centers for Medicare and Medicaid Services (CMS), this notice updates the payment rates for the Medicare prospective payment system (PPS) for inpatient psychiatric hospital services provided by inpatient psychiatric facilities (IPFs). These changes are applicable to IPF discharges occurring during the rate year beginning July 1, 2009 through June 30, 2010. CMS also requested comments on the IPF PPS teaching adjustment and the market basket.

For rate year (RY) 2010, which begins July 1, 2009, the IPF PPS rate will change as follows:

• The IPF per diem rate increases to $651.76. In RY 2009, the per diem rate was $637.78.

• The electroconvulsive therapy payment increases to $280.60.

• The fixed dollar loss threshold increases to $6,565, up from $6,113 in RY 2009

• The rule also updates the national urban and rural cost-to-charge ratio medians and ceilings, the cost of living adjustment factors for Alaska and Hawaii, and describes changes the International Classification of Diseases coding and diagnosis groups.