tci Medicare Compliance & Reimbursement - 2006 Issue 5

REIMBURSEMENT: IPF Payment Changes Could Buy Better Psychiatric Care

Freestanding governmental psychiatric hospitals may get the largest pay increaseInpatient psychiatric facilities may soon receive a significant Medicare payment rate increase for discharges on or after July 1, 2006--if the Centers for Medicare & Medicaid Services passes a new rule.The rate increase--part of a three-year transition from cost-based reimbursements to a new IPF prospective payment system--would affect 1,800 IPFs, including freestanding psychiatric hospitals and certified psychiatric units in general acute care and critical access hospitals. CMS bases the federal per-diem rate on inpatient operating- and capital-related costs; the rate would increase from $575.95 to $594.66...

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