CMS today proposed a new Medicare prospective payment system for inpatient psychiatric facilities to replace the existing cost-based payment system.
The new system, required under a 1999 federal law, would affect about 2,000 inpatient psychiatric facilities, including psychiatric hospitals and psychiatric units within hospitals, CMS says in a statement.
CMS says it is proposing a per diem payment, including labor, ancillary services and capital costs but not such costs as bad debts.
It would phase in the new system over three years, instituting a blend of decreasing cost-based payments and increasing PPS payments, with full PPS rates becoming effective in the fourth year.
It would also include provisions for higher "outlier" payments for patients with "extraordinary care needs" and for interrupted stays, when a patient is discharged, then returns within five days.
The proposed rule will be published in the Nov. 24 Federal Register. CMS says comments will be accepted until Jan. 23, and a final rule will be published later in 2004.