Medicare Program; FY 2027 Inpatient Psychiatric Facilities Prospective Payment System-Rate Update

CMS has finalized payment rate updates for Medicare inpatient psychiatric facilities (IPFs) effective October 1, 2026 through September 30, 2027, adjusting prospective payment rates, the outlier threshold, and the wage index. The rule also refines the outlier payment policy, introduces a standardized IPF patient assessment instrument, and removes two measures from the IPF Quality Reporting Program. Physical therapists working in inpatient psychiatric settings should be aware of these reimbursement and quality reporting changes.

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