The Centers for Medicare & Medicaid Services issued a notice this week increasing prospective payment rates for hospital-based and freestanding Medicare inpatient psychiatric facilities by an average 2.3 percent for fiscal year 2014.
The increase, which takes effect Oct. 1, 2013, reflects a 2.6 percent market basket update minus a 0.5 percentage point productivity reduction and a 0.1 percentage point reduction, as required by the Social Security Act. The rate increase also includes a 0.3 percentage point increase in the expected proportion of outlier payments, and retains the 17 percent adjustment for IPFs located in rural areas and the 1.31adjustment factor for IPFs with a qualifying emergency department.
The overall economic impact of the rate change is an estimated $115 million in increased payments to IPFs during FY 2014.
Read the complete notice here.