30 Apr 2025

🏥Proposed Medicare Payment System Updates for Inpatient Rehabilitation Facilities

Medicare Program; Inpatient Rehabilitation Facility Prospective Payment System for Federal Fiscal Year 2026 and Updates to the IRF Quality Reporting Program

Summary

This proposed rule would update the prospective payment rates for inpatient rehabilitation facilities (IRFs) for Federal fiscal year (FY) 2026. As required by statute, this proposed rule includes the proposed classification and weighting factors for the IRF prospective payment system's case-mix groups and a description of the methodologies and data used in computing the prospective payment rates for FY 2026. It also continues the second year of the 3-year phaseout of the rural adjustment, which began in FY 2025. Additionally, the proposed rule includes updates to the IRF Quality Reporting Program (QRP).

Agencies

  • Health and Human Services Department
  • Centers for Medicare & Medicaid Services

Business Impact ?

$$$ - High

The proposed rule outlines updates to the Medicare Payment System for inpatient rehabilitation facilities, with significant payment rate adjustments and removal of certain quality measures. This will directly impact facility revenues and compliance requirements, necessitating adaptation to new rates and quality reporting protocols.

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