CMS has finalized prospective payment rates for Medicare inpatient hospital services provided by inpatient psychiatric facilities (IPFs) for FY 2014.  CMS estimates that the FY 2014 rates will increase by a total of $115 million compared to FY 2013 levels. CMS is providing a 2.6% market basket update, which is adjusted by a 0.1 percentage point reduction and a 0.5 percentage point multi-factor productivity adjustment/reduction mandated by the ACA. CMS also is decreasing the outlier threshold amount from $11,600 in FY 2013 to $10,245 in FY 2014, which is expected to increase outlier payments by $15 million.