FY 2027 Inpatient Psychiatric Facilities PPS Proposed Rule Summary

CMS released the fiscal year (FY) 2027 Inpatient Psychiatric Facilities (IPF) Prospective Payment System (PPS) proposed rule (CMS-1847-P) on April 2, 2026. The proposed rule was published in the April 7, 2026, Federal Register. IPFs include psychiatric hospitals and psychiatric units of acute care hospitals or critical access hospitals. The public comment period ends on June 1, 2026. This proposed rule updates the prospective payment rates, the outlier threshold, and the wage index for Medicare inpatient hospital services provided by IPFs for discharges occurring October 1, 2026, through September 30, 2027 (FY 2027). CMS requests public comment on using alternative data, such as from the Bureau of Labor Statistics, as the basis for the IPF wage index. There is also a proposal to limit an IPF’s outlier payments to no more than 20 percent of its total IPF PPS payments in a year. The proposed rule would implement a standardized IPF patient assessment instrument and remove two quality measures.

Addenda containing payment rates and other relevant information for determination of FY 2027 IPF PPS rates are available at: Tools and Worksheets | CMS. Wage index information is available at: IPF Wage Index | CMS.