CMS Issues IPF PPS Final Rule
The Centers for Medicare & Medicaid Services (CMS) today issued the Fiscal Year 2027 Medicare Inpatient Psychiatric Facility Prospective Payment System Final Rule (CMS-1847-F). The final rule includes changes to payments under the Inpatient Psychiatric Facility (IPF) Prospective Payment System (PPS) and makes changes to the IPF Quality Reporting Program.
Despite NABH’s opposition, CMS has finalized the proposed IPF patient assessment instrument (IPF-PAI). NABH’s comments are cited throughout the rule, noting the proposed IPF-PAI is clinically inappropriate, does not improve the outcomes for IPF patients, and is an enormous burden for psychiatric hospitals and units.
CMS finalized the instrument as proposed with a few modifications to the timeline and payment requirements. CMS has pushed back mandatory reporting from October 1, 2027 to July 1, 2028. Additionally, instead of requiring 100% IPF-PAI reporting for 80% of patients, CMS lowered the completeness requirement to 50% of the IPF-PAIs submitted at the start of reporting. Beginning with the CY 2030 reporting period, CMS will increase the reporting threshold to 70% of patients. For IPFs not meeting the completeness requirement, CMS will reduce payments by 2%.
While we are pleased with the delayed reporting and lowered completeness requirement, NABH is disappointed CMS did not seek to delay the IPF-PAI indefinitely while NABH and its members can support development of a clinically appropriate tool. We will continue to work with CMS to urge them to further delay and update the IPF-PAI.

