UHS · 10-Q · 2026Q3 · Full report

Psych PPS Payment Update

UNIVERSAL HEALTH SERVICES INC · 2026-11-06 · Importance 37 · Surprise 32

CMS’s July 2026 Psych PPS final rule estimates a 2.3% market-basket-related payment increase for behavioral health hospitals and units in federal fiscal year 2027 versus FY 2026. After final patient-level adjustments and proposed wage-index values, UHS estimates its Psych PPS payments will increase 2.0% in FY 2027. The rule also requires participating inpatient psychiatric facilities to report the new standardized IPF Patient Assessment Instrument for Rate Year 2028, as required by the CAA of 2023.

Key facts

• UNIVERSAL HEALTH SERVICES INC estimates its behavioral health hospitals' Psych PPS payments will increase 2.0% in federal fiscal year 2027 after final patient-level adjustments and proposed wage index values. source
• CMS's FY 2027 Psych PPS rule estimates a 2.3% payment increase from the market basket update, including a 3.2% net market basket update offset by a 0.9% productivity adjustment. source
• The 2027 Psych PPS final rule requires IPFs participating in the IPF Quality Reporting Program to report the new standardized IPF Patient Assessment Instrument for Rate Year 2028. source