CMS Issues Final Inpatient Rehabilitation Facility FY 2019 PPS Update

The Centers for Medicare and Medicaid Services (CMS) has published a final rule to update the payment rates for inpatient rehabilitation facilities (IRFs) for federal fiscal year 2019 (discharges occurring on or after Oct. 1, 2018, and on or before Sept. 30, 2019). For IRFs, net payments will increase by 1.3% ($105 million) relative to FY 2018 payments, which includes a 2.9% market-basket update, offset by statutorily mandated cuts of 0.8 percentage points for productivity and an additional cut of 0.75%, and a 0.1% decrease in outlier payments. CMS also finalizes its proposal to remove the Functional Independence Measure instrument and associated function modifiers from the IRF patient assessment instrument, effective for discharges beginning on or after Oct. 1, 2019 (FY 2020). In addition, the rule allows the post-admission physician evaluation to count as one of the mandated face-to-face visits and rehabilitation physicians to remotely lead interdisciplinary team meetings. For more details, see today’s first Financial Feature.

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