Section 412.404 - Conditions for payment under the prospective payment system for inpatient hospital services of psychiatric facilities(a)General requirements.(1) Effective for cost reporting periods beginning on or after January 1, 2005, an inpatient psychiatric facility must meet the conditions of this section to receive payment under the prospective payment system described in this subpart for inpatient hospital services furnished to Medicare Part A fee-for-service beneficiaries.(2) If an inpatient psychiatric facility fails to comply fully with these conditions, CMS may, as appropriate-(i) Withhold (in full or in part) or reduce Medicare payment to the inpatient psychiatric facility until the facility provides adequate assurances of compliance; or(ii) Classify the inpatient psychiatric facility as an inpatient hospital that is subject to the conditions of subpart C of this part and is paid under the prospective payment system as specified in § 412.1(a)(1) .(b)Inpatient psychiatric facilities subject to the prospective payment system. Subject to the special payment provisions of § 412.22(c) , an inpatient psychiatric facility must meet the general criteria set forth in § 412.22 . In order to be excluded from the hospital inpatient prospective payment system as specified in § 412.1(a)(1) , a psychiatric hospital must meet the criteria set forth in §§ 412.23(a) , 482.60 , 482.61 , and 482.62 and psychiatric units must meet the criteria set forth in § 412.25 and § 412.27 .(c)Limitations on charges to beneficiaries -(1)Prohibited charges. Except as permitted in paragraph (c)(2) of this section, an inpatient psychiatric facility may not charge a beneficiary for any services for which payment is made by Medicare, even if the facility's cost of furnishing services to that beneficiary are greater than the amount the facility is paid under the prospective payment system.(2)Permitted charges. An inpatient psychiatric facility receiving payment under this subpart for a covered hospital stay (that is, a stay that included at least one covered day) may charge the Medicare beneficiary or other person only the applicable deductible and coinsurance amounts under §§ 409.82 , 409.83 , and 409.87 of this chapter and for items or services as specified under § 489.20(a) of this chapter.(d)Furnishing of inpatient hospital services directly or under arrangement.(1) Subject to the provisions of § 412.422 , the applicable payments made under this subpart are payment in full for all inpatient hospital services, as specified in § 409.10 of this chapter. Hospital inpatient services do not include the following: (i) Physicians' services that meet the requirements of § 415.102(a) of this chapter for payment on a fee schedule basis.(ii) Physician assistant services, as specified in section 1861(s)(2)(K)(i) of the Act.(iii) Nurse practitioners and clinical nurse specialist services, as specified in section 1861(s)(2)(K)(ii) of the Act.(iv) Certified nurse midwife services, as specified in section 1861(gg) of the Act.(v) Qualified psychologist services, as specified in section 1861(ii) of the Act.(vi) Services of a certified registered nurse anesthetist, as specified in section 1861(bb) of the Act and defined in § 410.69 of this subchapter.(2) CMS does not pay providers or suppliers other than inpatient psychiatric facilities for services furnished to a Medicare beneficiary who is an inpatient of the inpatient psychiatric facility, except for services described in paragraphs (d)(1)(i) through (d)(1)(vi) of this section(3) The inpatient psychiatric facility must furnish all necessary covered services to a Medicare beneficiary who is an inpatient of the inpatient psychiatric facility, either directly or under arrangements (as specified in § 409.3 of this chapter).(e)Reporting and recordkeeping requirements. All inpatient psychiatric facilities participating in the prospective payment system under this subpart must meet the recordkeeping and cost reporting requirements as specified in §§ 412.27(c) , 413.20 , 413.24 , and 482.61 of this chapter. 69 FR 66977 , Nov. 15, 2004, as amended at 76 FR 26465 , May 6, 2011