US · guidance
CMS Pub. 100-04, ch. 3, § 190.4.1
Standardization Factor
The CMS standardized the IPF PPS Federal per diem base rate for Rate Year 2005 in
order to account for the overall positive effects of the IPF PPS payment adjustment
factors. To standardize the IPF PPS payments, CMS compared the IPF PPS payment
amounts calculated from the FY 2002 MedPAR file to the projected TEFRA payments
from the FY 2002 cost report file updated to the midpoint of the IPF PPS implementation
period (that is, October 2005). The standardization factor was calculated by dividing total
estimated payments under the TEFRA payment system by estimated payments under the
IPF PPS. CMS then applied this factor to the average per diem cost of an IPF stay.
For FY 2025, CMS applied a refinement standardization factor to the IPF PPS federal per
diem base rate and ECT per treatment amount to ensure that the rates reflect the FY 2025
update to the patient-level adjustment factors in a budget neutral manner.
For FY 2026, CMS applied a refinement standardization factor to the IPF PPS federal per
diem base rate and ECT per treatment amount to ensure that the rates reflect the FY 2026
update to the facility-level adjustment factors in a budget neutral manner.
History
(Rev. 13364; Issued: 08-14-25; Effective: 10-01-25; Implementation: 10-06-25)
Provenance
- Source
- cms.gov
- Retrieved
- 2026-08-25
- Edition
- iom-2026-08-25
- Content hash
65a8dc8b383bc3edacdb0941d642d2921517de1961f10d3b09b275128f473497
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