FY 2023 Inpatient Psychiatric Facilities Prospective Payment System Final Rule Summary

On July 29, 2022, the fiscal year (FY) 2023 Inpatient Psychiatric Facilities (IPF) Prospective Payment System (PPS) final rule (CMS-1769-F) was published in the Federal Register (87 FR 46846). IPFs include psychiatric hospitals and psychiatric units of acute care hospitals or critical access hospitals. The FY 2023 IPF PPS final rule describe updates to IPF rates and payment adjustments and the IPF Quality Reporting Program for FY 2023. This final rule establishes a permanent limit on decreases to the IPF wage index of 5 percent annually. The proposed rule included requests for information on a contractor report analyzing the IPF PPS facility and patient level and adjustments and incorporating measures of health equity and disparities across CMS quality programs. CMS indicates that it will consider those comments in future rulemaking. The changes in this final rule are effective for IPF discharges occurring October 1, 2022, through September 30, 2023 (FY 2023).