PSYCHIATRIC HOSPITAL

Medicare’s Inpatient Psychiatric Facility Prospective Payment System (IPF-PPS) covers inpatient psychiatric services delivered at specialized hospitals and units. 

IPF-PPS payments are based on an annually updated national per-diem rate that is adjusted by area facility wages, psychiatric-specific inpatient hospital Diagnosis-Related Groups (DRGs), high cost admissions, and additional patient-specific factors, such as age, length-of-stay and the presence of specific co-morbidities. 

The IPF-PPS also includes facility-level payment add-ons for rural hospitals and units, teaching hospitals, and hospitals with fully functioning emergency departments. 

NEWS

5/07/2008 ::  The 2009 Medicare rule for the Inpatient Psychiatric Facility Prospective Payment System (IPF PPS) was released today. Since the rule has no policy changes it is being released in a final version and includes an approximate 3.7% increase in base per diem payments. Additional bullet points are available to OHA members.