FY 2026 Inpatient Psychiatric Facilities PPS Proposed Rule Summary

CMS released the fiscal year (FY) 2026 Inpatient Psychiatric Facilities (IPF) Prospective Payment System (PPS) proposed rule (CMS- 1831-P) on April 11, 2025. The public comment period will end on June 10, 2025. IPFs include psychiatric hospitals and psychiatric units of acute care hospitals or critical access hospitals. This proposed rule would update the prospective payment rates, the outlier threshold, and the wage index for Medicare inpatient hospital services provided IPFs for discharges occurring October 1, 2025, through September 30, 2026 (FY 2026). This rule includes a proposal to revise the payment adjustment factors for teaching status and for IPFs located in rural areas. This proposed rule would update a quality measure, remove four quality measures, and update and codify the Extraordinary Circumstances Exception policy under the IPF Quality Reporting Program as well as make requests for information on the program’s future. Addenda that show payment rates and other relevant information for determination of FY 2026 IPF PPS rates are available at: Inpatient Psychiatric Facilities PPS Files | CMS. Wage index information is available at: IPF Wage Index | CMS.