CMS looks to increase psychiatric facility payments
Medicare payments to 1,679 inpatient psychiatric facilities will increase by $95 million over the next year under a proposed rule issued by the CMS. The rulemaking proposes an overall payment update of 2.26% for these facilities, reflecting an inflationary update of 2.4%, a negative adjustment of 0.25% applied under the new health reform law and other adjustments. The proposed update is applicable to all inpatient psychiatric discharges that take place from July 1, 2010, through June 30, 2011. The update, however, varies according to hospital type: Urban facilities for example would experience an update of 2.28%, as opposed to rural facilities, whose update is projected at 2.14%. By region, Pacific-area psychiatric facilities would see an update of 2.32% compared with New England (2.83%) and the Mid-Atlantic (2.2%).