Medicare Payment Basics: Inpatient Psychiatric Facility Services Payment System

In October 2013,  the Medicare Payment Advisory Commission (MedPAC)—an independent congressional agency established to advise the U.S. Congress on issues affecting the Medicare program—issued an update on the Medicare payment system for specialty inpatient psychiatric facilities (IPFs), either freestanding hospitals or specialized hospital-based units. Under the prospective payment system (PPS) for IPF care, Medicare pays for the per diem routine, ancillary, and capital costs associated with furnishing covered inpatient psychiatric services. A base per diem payment is adjusted to account for differences in the cost of care related to specified patient and facility characteristics. Adjustments for . . .