Summary

GAO reviewed the Department of Health and Human Services, Centers for Medicare and Medicaid Services' (CMS) new rule on a prospective payment system for inpatient psychiatric facilities. GAO found that (1) the final rule would implement section 124 of the Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of 1999 by establishing a prospective payment system for Medicare payment of inpatient hospital services furnished in psychiatric hospitals and psychiatric units of acute care hospitals and critical access hospitals; and (2) CMS complied with applicable requirements in promulgating the rule, with the exception of the delay in the effective date.