Which payment system reimburses inpatient psychiatric facilities based on patient resource use?

The payment system that reimburses inpatient psychiatric facilities based on patient resource use is the Inpatient Psychiatric Facility Prospective Payment System (IPF PPS). This system is specifically designed to address the unique needs and services provided by psychiatric facilities by establishing payment rates that reflect the expected costs of care provided to patients.

IPF PPS uses a per-diem payment model, which considers various factors such as the diagnosis of the patient, their level of care and resource use, as well as the facility's geographic location. This ensures that payments are aligned with the complexity and intensity of the services rendered, making it a more tailored approach for psychiatric care compared to other payment systems that may not fully capture such specifics.

The IRF PPS, or Inpatient Rehabilitation Facility Prospective Payment System, focuses on rehabilitation services for patients rather than psychiatric needs. The SNF PPS (Skilled Nursing Facility Prospective Payment System) applies to nursing facilities and is structured around the care of recovering patients needing skilled nursing and rehabilitation services. The HH PPS (Home Health Prospective Payment System) pertains to home health care services and does not relate to inpatient psychiatric care either.

Therefore, the IPF PPS is correctly identified as the system that addresses the reimbursement needs specific to inpatient psychiatric facilities, taking