New Manatt Study Details Psychiatric Facility Compliance With CMS Regulations

Study: Medicare Compliance Costing Psychiatric Facilities Nearly $2B a Year
– FierceHealthcare

Manatt’s Fatema Zanzi, a partner with Manatt Health, spoke to FierceHealthcare about a recently released Manatt Health study on inpatient psychiatric facilities and their compliance with the Centers for Medicare & Medicaid Services.

The study found that these facilities are forced to spend a significant amount of their budgets to comply with CMS regulations—on average, 4.8% of a facility’s annual revenue, for a collective total of $1.7 billion annually. The study also found that more than half of the country’s 1,738 inpatient psychiatric facilities have negative net operating margins.

Zanzi said it is important to understand the full scope of these costs.

“More than a third of those costs (an estimated $638 million per year) was related just to modifications inpatient psychiatric facilities needed to make to their physical space in order to comply with the evolving interpretations of a ligature-resistant environment,” she said. “It is important to note that these costs do not account for the costs associated with lost revenue to the facility if certain parts of the facility are closed for renovations or the cost to the community of losing access to beds or services during such renovations.”

Read the article here