(1) For inpatient psychiatric services provided on or after July 1, 1999, the Montana Medicaid program will pay a provider for each patient day as provided in these rules.

(a) Medicaid payment is not allowable for treatment or services provided in a residential treatment facility that are not within the definition of residential psychiatric care in ARM 37.88.1102 and all other applicable requirements are met.

(b) Medicaid payment is not allowable for treatment or services provided in an inpatient psychiatric hospital facility that are not within the definition of inpatient hospital psychiatric care in ARM 37.88.1102 and unless all other applicable requirements are met.

(2) For inpatient psychiatric services provided by a residential treatment facility in the state of Montana, the Montana Medicaid program will pay a provider, for each Medicaid patient day, a bundled per diem rate as specified in (3), less any third party or other payments.

(3) The statewide bundled per diem rate for inpatient psychiatric services is the lesser of:

(a) the amount specified in the department's Medicaid mental health fee schedule; or

(b) the provider's usual and customary charges (billed charges).

(4) Reimbursement for inpatient psychiatric services provided to Montana Medicaid recipients in facilities located outside the state of Montana will be as provided in ARM 37.86.2905.