Medicare corrects psych hospital pay glitch in Hattiesburg
Published Date: 10/1/2026
Rule
Summary
Medicare fixed some math mistakes in the 2027 payment rules for inpatient psychiatric hospitals. This update mainly affects one hospital in Hattiesburg, Mississippi, and slightly changes payment rates and wage indexes starting October 1, 2026. These tweaks ensure hospitals get paid the right amount for the care they provide.
Analyzed Economic Effects
4 provisions identified: 1 benefits, 2 costs, 1 mixed.
Wage Index Correction for Hattiesburg IPF
CMS corrected the FY 2027 inpatient psychiatric facility (IPF) wage index after omitting one hospital in CBSA 25620 (Hattiesburg, Mississippi). The recalculation changed the wage index budget neutrality factor from 0.9989 to 0.9986 and updated related tables and impacts, effective October 1, 2026.
Small Cuts to IPF Per-Diem and ECT Payments
CMS adjusted FY 2027 payment amounts slightly downward: the IPF Federal per diem base rate changed from $912.40 to $912.13; the per diem for providers failing to report quality data changed from $894.56 to $894.29. The electroconvulsive therapy (ECT) payment per treatment changed from $688.59 to $688.38, and the ECT rate for non-reporting providers changed from $675.13 to $674.93, effective October 1, 2026.
Higher Adjustment for IPFs Without Emergency Departments
CMS corrected an adjustment factor used for IPFs that do not have a qualifying emergency department (ED) from 1.27 to 1.28. This change is effective October 1, 2026.
Updated Largest Payment Decrease — East South Central
CMS updated Table 16 and the summary of payment impacts: the largest payment percent decrease is corrected to 1.3% (previously 1.1%), and the text now identifies the affected hospitals as those located in the East South Central region, effective October 1, 2026.
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