CMS Finalizes 2.4% Payment Increase to IPFs in FY 2026

The Centers for Medicare & Medicaid Services (CMS) will apply a 2.4% payment increase to inpatient psychiatric facilities in 2026, according to the Fiscal Year (FY) 2026 Inpatient Psychiatric Facility (IPF) Prospective Payment System (PPS) final rule the agency released Friday in the Federal Register.

The final rule also includes a slight increase in the outlier threshold as well as increases to the teaching and rural facility adjustments.

For the IPF Quality Reporting program, CMS will remove four quality measures: Facility Commitment to Health Equity, COVID-19 Vaccination Coverage Among Healthcare Personnel, Screening for Social Drivers of Health, and Screen Positive Rate for Social Drivers of Health.

The rule also noted CMS will modify the reporting period from one to two years for the 30-day Risk-Standardized All Cause Emergency Department Visit Following an IPF Discharge measure and will delay its initial use to the FY 2029 payment determination.

These changes align with the agency’s proposed rule. Click here for a summary of provisions that take effect on Oct. 1, 2025.