On April 29, the Centers for Medicare & Medicaid Services (CMS) released a final rule (amending 42 CFR Part 412) affecting Medicare inpatient psychiatric facility payments.  The rule will result in an average estimated increase of 2.74 percent in payments for 2012.  The rule updates payment policies and rates for discharges beginning on July 1, 2011 through September 30, 2012.  The rule revises the teaching policy for inpatient psychiatric facilities (IPFs) to allow temporary increases in the intern and resident caps, with cost of living adjustments allowed for IPFs in Alaska and Hawaii.  The rule provides that in 2013, CMS will change the IPF prospective payment system (PPS) from a rate cycle that runs from July 1 through June 30 to a fiscal year cycle that begins on October 1 and ends on September 30 (the Federal FY), which will result in a 15-month update.  The rule also rebases and revises the Rehabilitation, Psychiatric, and Long Term Care (RPL) market basket and makes some extensive clarifications and corrections to terminology and regulations text.  The rule becomes effective on July 1, 2011.