Medicare Payment Bump Proposed for Psychiatric Facilities

Medicare payments to inpatient psychiatric facilities would increase 2.4%, or $70 million, in fiscal 2026 under a proposed rule released Friday.

The proposed rule from the Centers for Medicare & Medicaid Services (RIN: 0938-AV46), if finalized, will take effect Oct. 1, 2025, and include payment updates to the inpatient psychiatric facility Quality Reporting Program. It will publish in the Federal Register on April 30.

Inpatient psychiatric facilities include both freestanding psychiatric hospitals and inpatient psychiatric units of acute-care hospitals. They provide round-the-clock care for psychiatric emergencies, according to the National Association for Behavioral Healthcare.

The proposed rule includes ...