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HHS/CMS RIN: 0938-AL50 Publication ID: Fall 2003 
Title: Prospective Payment System for Inpatient Psychiatric Facilities FY 2004 (CMS-1213-F) 
Abstract: This rule sets forth a prospective payment system (PPS) for inpatient psychiatric facilities and psychiatric units. 
Agency: Department of Health and Human Services(HHS)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 42 CFR 412, subpart N     (To search for a specific CFR, visit the Code of Federal Regulations.)
Legal Authority: PL 106-113    Sec 124 of the Social Security Act    Sec 1886 of the Social Security Act   
Legal Deadline:
Action Source Description Date
NPRM  Statutory  Public Law 106-113, sec 124.  10/01/2002 

Statement of Need: This rule sets forth a PPS for psychiatric hospitals and psychiatric part units. It would replace the current TEFRA payment mechanism for inpatient psychiatric facilities (IPF).

Summary of the Legal Basis: Section 124 of Balanced Budget Refinement Act of 1999 mandated implementation of an IPF, PPS.

Alternatives: An IPF PPS is required by statute.

Anticipated Costs and Benefits: The statute requires us to implement this PPS in a budget-neutral fashion, however, there will be CMS administrative costs associated with its implementation.

Risks: Redistributional effects inherent in a budget-neutral payment system may adversely affect certain classes of facilities.

Timetable:
Action Date FR Cite
NPRM  11/28/2003  68 FR 66919   
Final Action  09/00/2004    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal, Local, State 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
Agency Contact:
Lana Price
Director, Division of Chronic Care Management, Chronic Policy Group
Department of Health and Human Services
Centers for Medicare & Medicaid Services
C5-05-27, Center for Medicare Management, C5-05-27, 7500 Security Boulevard,
Baltimore, MD 21244
Phone:410 786-4533
Email: lprice@cms.hhs.gov