Fiscal Year 2024 Medicare Inpatient Psychiatric Facility Prospective Payment System (IPF PPS) and Quality Reporting (IPFQR) Updates Proposed Rule (CMS-1783-P)

Mary Madison, RN, RAC-CT, CDP
Clinical Consultant – Briggs Healthcare

On April 4, 2023, the Centers for Medicare & Medicaid Services (CMS) issued a proposed rule to update Medicare payment policies and rates for the Inpatient Psychiatric Facility Prospective Payment System (IPF PPS) for fiscal year (FY) 2024. CMS is publishing this proposed rule consistent with the legal requirements to update Medicare payment policies for IPFs on an annual basis.

See for a fact sheet discussing the major provisions of the proposed rule, including proposed annual updates to the prospective payment rates, the outlier threshold, the wage index, and associated impact analysis. In addition, the rule includes a proposal to rebase and revise the IPF market basket, as well as a proposal to modify regulations to allow hospitals to open and begin billing Medicare for an excluded IPF unit anytime within the cost reporting year, which CMS believes will help increase access to essential inpatient psychiatric services and available beds.

This proposed rule also includes a request for information to inform future revisions to the IPF PPS, which are required by the Consolidated Appropriations Act, 2023 (CAA, 2023).

Lastly, for the IPF Quality Reporting (IPFQR) Program, CMS is proposing to adopt four new measures, modify one existing measure, remove two existing measures, and adopt and implement a data validation pilot. One of the measures being proposed is a patient experience survey measure, which is also a requirement of the CAA, 2023. CMS is also proposing to codify the IPFQR Program’s requirements and policies at 42 C.F.R. § 412.433 in alignment with CMS’ other quality reporting programs.

The FY 2024 IPF PPS proposed rule can be downloaded from the Federal Register at:—rate-update or