CMS has published a notice with comment period updating prospective payment system (PPS) rates for Medicare services furnished by inpatient psychiatric facilities (IPFs) during fiscal year (FY) 2018.  CMS estimates that its policies will increase payments by $45 million (0.99%) compared to FY 2017 levels.  This increase is based on 1.25% payment rate update, offset by a 0.26 percentage point reduction due to the outlier fixed-dollar loss threshold adjustment.  The FY 2018 IPF PPS per diem will rise from $761.37 in FY 2017 to $771.35 in FY 2018; providers that fail to meet quality data reporting requirements will receive a FY 2018 per diem rate of $756.11.  The fixed dollar loss threshold amount also will increase, from $10,120 in FY 2017 to $11,425 in FY 2018.  The notice does not include substantive changes in policy.

As it has in other recent Medicare payment rulemaking, CMS solicits comments on ways the agency can “increase quality of care, lower costs improve program integrity, and make the health care system more effective, simple and accessible.” CMS will accept comments until October 6, 2017.