What: On April 7, 2026, the Centers for Medicare & Medicaid Services (CMS) published a proposed rule to update the prospective payment rates, the outlier threshold, and the wage index for Medicare inpatient hospital services provided by Inpatient Psychiatric Facilities (IPFs), which include psychiatric hospitals and excluded psychiatric units of an acute care hospital or critical access hospital.
Why: The CMS proposed rule acknowledges that technological, financial, and staffing barriers may present challenges to adoption and use in some facilities. CMS also recognizes that IPFs and the health information technology (IT) vendors that support IPFs would require time to develop and implement data collection and submission tools for the proposed IPF-Patient Assessment Instrument. Because each IPF and health IT vendor is unique and has varying individual workflows, decisions, and costs for each, CMS seeks comments on the proposed IPF market basket increase and productivity adjustment for FY 2027.
Action: Review the proposed rule and submit comments before the June 1, 2026, deadline.
Is your small business or entity being impacted by a proposed rule? If yes, write a comment letter to the proposing agency.