FY 2027 Inpatient Psychiatric Facilities PPS Final Rule Summary

The Centers for Medicare & Medicaid Services (CMS) released the fiscal year (FY) 2027 Inpatient Psychiatric Facilities (IPF) Prospective Payment System (PPS) final rule (CMS-1847-F) on July 29, 2026. The final rule was published in the July 31, 2026, Federal Register. IPFs include psychiatric hospitals and psychiatric units of acute care hospitals or critical access hospitals.

This final 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). Effective October 1, 2028, CMS will limit an IPF’s outlier payment to no more than 20 percent of its total IPF PPS payments in a year with an exception for IPFs with fewer than 50 stays per year. The rule implements a standardized IPF patient assessment instrument and removes two quality measures.