Prior to rate year (RY) 2012, the Inpatient Psychiatric Facility Prospective Payment System (IPF PPS) was on a July 1st – June 30 th annual update cycle. The first update to the IPF PPS occurred on July 1, 2006, and every July 1 thereafter.
Effective with RY 2012, the IPF PPS payment rate update period will switch from a rate year that begins on July 1st ending on June 30th to a period that coincides with a fiscal year (FY.) To transition from a RY to a FY, the IPF PPS RY 2012 will cover the15 month period from July 1st– September 30th
This change to the payment update period will allow one consolidated annual update to both the rates and the ICD-9-CM coding changes (MS-DRG and comorbidities). Coding and rate changes will continue to be effective October 1st – September 30th of each year thereafter.
For more information refer