tci Medicare Compliance & Reimbursement - 2004 Issue 1

Psychiatric Facilities: 7 KEY ELEMENTS OF THE INPATIENT PSYCH FACILITY PPS PROPOSAL

2,000 psychiatric hospitals and units brace for a new reimbursement era. Yet another class of health care providers will soon bid farewell to cost-based Medicare reimbursement. The Centers for Medicare & Medicaid Services Nov. 19 unveiled a new proposed prospective payment system for inpatient psychiatric facilities. The proposal, also published in the Nov. 28 Federal Register, will affect 2,000 facilities nationwide, including freestanding psych hospitals and certified psychiatric units in general acute care hospitals. The PPS will be rooted in a base per diem amount which is designed to cover nearly all costs for providing inpatient psychiatric...

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