IMD exclusion
Also written as: IMD — Institution for Mental Disease
A Medicaid rule that prohibits federal funding for care in institutions for mental diseases with more than 16 beds.
Full Definition
The Institution for Mental Disease (IMD) exclusion is a provision in Medicaid law that prohibits the use of federal Medicaid funds to pay for services provided to individuals aged 21-64 in institutions for mental diseases that have more than 16 beds. This rule was designed to prevent the re-institutionalization of mental health care and encourage community-based treatment. The IMD exclusion significantly impacts community psychiatry by limiting funding options for residential treatment facilities and influencing the development of smaller, community-based programs.
Usage
Usage note: Always specify the 16-bed threshold when explaining this rule.
In Context
- "The proposed 20-bed facility would trigger the IMD exclusion rule." — Funding proposal
- "Due to IMD exclusion, the program redesigned services to accommodate only 15 residents." — Program planning document