---
kind: "section"
citation: "42 C.F.R. § 412.422"
title: "42"
number: "412.422"
heading: "Basis of payment."
url: "https://uscodex.org/cfr/42/412.422"
---

# §412.422. Basis of payment.

- (a) **Method of Payment.**
  - (1) Under the inpatient psychiatric facility prospective payment system, inpatient psychiatric facilities receive a predetermined Federal per diem base rate for inpatient hospital services furnished to Medicare Part A fee-for-service beneficiaries.
  - (2) The Federal per diem payment amount is based on the Federal per diem base rate plus applicable adjustments as specified in [§ 412.424](/cfr/42/412.424.md).
  - (3) During the transition period, payment is based on a blend of the Federal per diem payment amount as specified in [§ 412.424](/cfr/42/412.424.md), and the facility-specific payment rate as specified in [§ 412.426](/cfr/42/412.426.md).
- (b) **Payment in full.**
  - (1) The payment made under this subpart represents payment in full (subject to applicable deductibles and coinsurance as specified in [subpart G of part 409](/cfr/42/part409-subpartG.md) of this chapter) for inpatient operating and capital-related costs associated with furnishing Medicare covered services in an inpatient psychiatric facility, but not the cost of an approved medical education program as specified in [§ 413.75](/cfr/42/413.75.md) through [§ 413.85](/cfr/42/413.85.md) of this chapter.
  - (2) In addition to the Federal per diem payment amounts, inpatient psychiatric facilities receive payment for bad debts of Medicare beneficiaries, as specified in [§ 413.89](/cfr/42/413.89.md) of this chapter.

## Notes

### Amendments

[69 FR 66977, Nov. 15, 2004; 70 FR 19728, Apr. 1, 2005, as amended at 76 FR 26465, May 6, 2011]

### Source

Source: 69 FR 66977, Nov. 15, 2004, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 1302 and 1395hh.

### Source

Source: 50 FR 12741, Mar. 29, 1985, unless otherwise noted.

### Amendments

[69 FR 66977, Nov. 15, 2004; 70 FR 19728, Apr. 1, 2005, as amended at 76 FR 26465, May 6, 2011]