CMS proposes 2.8% payment update for IRFs

The Centers for Medicare & Medicaid Services March 27 released the fiscal year 2025 proposed rule for inpatient rehabilitation facilities, which would update IRF payments by an estimated 2.8% overall (or $280 million) in FY 2025. This includes a 3.2% market basket update, which is reduced by a 0.4% productivity adjustment. IRF payments would be further decreased by an estimated $25 million due to the proposed update for outlier payments.

While the CMS does not propose to adopt or remove any quality measures from the IRF Quality Reporting Program, the agency proposes to adopt and modify certain patient assessment items related to health-related social needs; IRFs would be required to collect and report specific data elements related to living situation, food and utilities beginning with the FY 2028 IRF QRP. The agency would also remove an element found to be redundant. Finally, CMS issues two Requests for Information, one related to future measure concepts and another on a potential “star rating” system for IRFs.

The rule will be published in the March 29 Federal Register, with comments accepted for 60 days.