On May 1, 2009, CMS published a notice updating Medicare inpatient psychiatric facility (IPF) PPS payments for rate year 2010, which begins July 1, 2009. CMS estimates that the notice will increase payments to IPFs by about 2.0% overall, taking into account a 2.1% market basket update offset somewhat by an increase to the outlier fixed dollar loss threshold amount. CMS waived issuance of a proposed rule in this case because it is not making any substantive changes in policy, but only applying previously-established methodologies. Nevertheless, CMS will accept comments on the update until June 30, 2009. In particular, CMS solicits data on variations in cost structures between freestanding and hospital-based IPFs to assist CMS in developing a stand-alone IPF market basket, and it is requesting information on the cap on full-time equivalent residents that may be used to calculate the IPF PPS teaching status adjustment.
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