Determining IPF PPS Reimbursement

The IPF PPS Is Based On A Federal Perdiem Amount That Represents The Average Daily Operational, Ancillary, And Capital Costs…

Determining IPF PPS Reimbursement

The IPF PPS is based on a federal perdiem amount that represents the average daily operational, ancillary, and capital costs expended to care for Medicare beneficiaries.  Use the information found in figures 1 and 2 ( below), Tables 6.5-6.9 and figures 6.7 from the test book to complete table 1 and workbooks A&B in order to determine IPF PPS reimbursement for this encounter.

Inpatient Psychiatric Facility Prospective Payment System (IPF PPS) PC PRICER

Section 124 (c) of Public Law 106-113, the Balance Budget Requirement Act of 1999 (BBRA) required the implementation of a per diem prospective payment system (PPS) for Inpatient Psychiatric Facilities (IPF). The per diem prospective payment system was implemented for inpatient psychiatric services that are furnished in a psychiatric hospital, units in an acute care hospitals or a critical access hospital.

Under this system, payment to IPFs is based on a Federal per diem base rate that includes both inpatient operating and capital-related costs (including routine and ancillary services) but excludes certain pass-through costs (i.e., bad debt and direct medical education). The Federal per diem base rate provides patient-level and facility-level adjustments including wage index and teaching adjustments and an add-on for rural facilities. The payment for an individual patient is further adjusted for factors such as the Diagnosis Related Group classification, age, length of stay, and the presence of specified comorbidities. Additional payments are provided for cost outlier cases, a qualifying emergency department (ED) and electroconvulsive therapy treatments.

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The IPF PPS PC PRICER makes all reimbursement calculations applicable under the IPF PPS including all payment adjustments, and outlier adjustments.

Figure 1: Facility Information
Bed size: 350 beds Location: Columbus, Ohio
Classification: Rural Wage Index: .9806
Full Service ED: Yes Per-diem unadjusted rate (RY 2015): $728.31

 

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Figure 2: Claim Information
Admit Date: January 1, 2015 Discharge Date: January 15, 2015 LOS: 14 days
Patient Age: 62
Principal Diagnosis: 295.34* Paraphrenic schizophrenia, chronic with acute exacerbation
Secondary Diagnosis: 301.6 Dependent personality disorder
Secondary Diagnosis: 250.02 Type II diabetes mellitus uncontrolled
MS-DRG: 885 Psychoses
ECT treatments: 90870 3 units $315.55 per unit (RY 2015)

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