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Medicare Final Rule for FY 2022: Inpatient Psychiatric Facility (IPF) Prospective Payment System


Release Date: July 29, 2021
Federal Register Publication Date:  August 4, 2021
Effective Date: October 1, 2021

Inpatient Psychiatric Facility (IPF) Final Rule:

Update factors Final FY21 Final FY22
IPF Market Basket 2.2% 2.7%
Outlier fixed-dollar loss threshold (.0%) .1%
Economy wide productivity adjustment   (.0%) (0.7%)
IPF Payment Rate 2.2% 2.1%

CMS estimates total payments to IPFs to increase by 2.1% or $80 million in FY 2022 related to IPF payments in FY 2021. Some takeaways from final rule include:

  • IPF PPS Federal per diem base rate from $815.22 to $832.94. 
  • Wage index budget-neutrality factor from .9989 to 1.0017.
  • Labor-related share from 77.3 percent to 77.2 percent.
  • CMS continues to make changes to the IPF PPS teaching policy in regards to displaced residents from IPF hospital closures and closures of IPF teaching programs. 
  • Adopting COVID-19 Vaccination Coverage among Healthcare Personnel (HCP) measure to the IPF QRP using the COVID-19 Modules on the CDC’s National Healthcare Safety Network web portal. 
  • Remove the FUH measure from the IPF QRP. 
  • Transition patient-level reporting for chart-abstracted measures.

Sources: CMS FY 2022 Inpatient Psychiatric Facility (IPF) Prospective Payment System (PPS) Final Rule and Federal Register 

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