The Centers for Medicare & Medicaid Services late yesterday issued a proposed rule for the inpatient rehabilitation facility prospective payment system for fiscal year 2023 that would increase payments by 2.8% ($170 million) relative to FY 2021 after a 0.4-percentage-point productivity adjustment and a 0.8-percentage-point cut for high-cost outlier payments.
 
CMS also proposes to cap wage index decreases at 5% to mitigate instability in IRF PPS payments; and seeks comments on potential changes to the IRF transfer payment policy, facility-level adjustment factors and IRF teaching status adjustment policy. 
 
In addition, CMS proposes to require IRFs to collect quality data on all patients, regardless of payer, beginning in October 2023. The agency estimates that the additional reporting burden will cost IRFs over $31 million per year (an average of nearly $29,000 per IRF). CMS does not propose any other changes to the IRF Quality Reporting Program, but it does solicit feedback on the potential future use of an electronic health record-informed quality measure as well as frameworks to address disparities in outcomes.

CMS will accept comments on the rule until 5 p.m. on May 31.

Related News Articles

Headline
Rep. Brett Guthrie, R-Ky., today addressed attendees of AHA’s 2024 Annual Membership Meeting and touched on many of the biggest issues in health care:…
Headline
The Change Healthcare cyberattack was a significant event that caught many off guard, said the Centers for Medicare & Medicaid Services Administrator…
Headline
The voluntary Episode Quality Improvement Program for specialist physicians saved Medicare $20 million in its first year, the Maryland Health Services Cost…
Headline
Commenting April 12 on a proposed rule to strengthen oversight of accrediting organizations, AHA told the Centers for Medicare & Medicaid Services it…
Headline
For future public health emergencies, the Centers for Medicare & Medicaid Services should improve how it sets Medicare rates for clinical diagnostic…
Headline
The Centers for Medicare & Medicaid Services April 4 finalized changes to the Medicare Advantage and prescription drug programs for contract year 2025…