On July 31, 2025, CMS issued the FFY 2025 Inpatient Psychiatric Facilities (IPF) Prospective Payment System and Quality Reporting (IPFQR) Updates Final Rule (CMS-1831-F).
- IPF PPS payments up 2.5% (3.2% market basket – 70 basis point productivity adjustment)
- Outlier threshold remains at 2% of total payments
- Total payments expected to rise 2.4% over 2025 levels
- IPF PPS Per diem up to $892.87 ($875.44 if failing to submit quality measures) from $876.53
- Increasing facility teaching and rural locations adjustment factors
- Electroconvulsive therapy (ECT) per treatment amount updated to $673.85 from $661.52
- Updates wage index
- Removes four quality measures and modifies reporting period of another measure
- Cost and claims data factors from 2020, 2021, and 2022 used to determine IPF PPS payment adjustments
- 2% annual payment reduction continues for not meeting quality reporting requirements
This Final Rule CMS-1831-F will be published August 5, 2025.
