Healthy IPF Rates, No Major Policy Shifts

Access memo here

Psychiatric hospitals will receive a +2.5% overall update in FY23. Total payments to IPF are said to increase by +2.5% ($90 M) in FY 2023 relative to IPF payments in FY 2022. For FY 2023, CMS is updating the IPF PPS payment rates by 3.8% based on the final IPF market basket update of 4.1% less a 0.3% point productivity adjustment. This 2023 MB growth rate of 4.1% update would be the highest market basket update CMS has implemented since the begging of the IPF PPS. This compares to the proposed rule which stated psychiatric hospitals would receive a +1.5% ($50 M) overall update in FY23. This is an update to the IPF payment rate of 2.7%, based on a MB update of 3.1%, less a 0.4% productivity adjustment.