Policy Updates

Inpatient Psychiatric Alert: Rate Update — Action Required by October 2024

By CLV IntelligenceSource published August 7, 2024

Medicare updates inpatient psychiatric payment rates effective October 1, 2024.

Action required by

October 1, 2024

Review the Action Required section below and ensure your team has completed all compliance steps before this date.

The recent updates to the Medicare payment rates for inpatient psychiatric facilities, as outlined in the Federal Register Final Rule (Policy ID: FR-2024-16909), will take effect on October 1, 2024.

What Changed The updates include adjustments to the per diem payment rates for inpatient psychiatric services, determined based on the facility's case mix and average length of stay. These changes reflect the current cost of providing psychiatric care and will impact reimbursement levels for fiscal year 2025. Facilities must review and adjust their billing practices accordingly to ensure compliance with the new payment structure.

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Quick answers

What are the new payment rates for inpatient psychiatric services?

The specific payment rates are detailed in the source document.

How will these changes affect my coding practices?

You will need to review and adjust your coding to align with the new payment structure.

What documentation is required under the new payment system?

Accurate records justifying the level of care, including clinical assessments and treatment plans, are essential.

Content summarized from publicly available federal publications including CMS, MAC contractors, and the Federal Register. CLV Intelligence is not affiliated with or endorsed by any government agency. This is not legal or medical advice.

Inpatient Psychiatric Alert: Rate Update — Action Required by October 2024