CMS Issues Proposed Inpatient Rehabilitation Facility FY 2020 PPS Update

The Centers for Medicare and Medicaid Services (CMS) has released a proposed rule that would update the payment rates and quality reporting items for Inpatient Rehabilitation Facilities (IRFs) for Federal Fiscal Year 2020. CMS says that the overall economic impact of this proposed rule results in an estimated $195 million increase in FY 2020 IRF PPS payments. The total addition in costs in FY 2020 for IRFs as a result of the proposed quality reporting requirements is estimated to be $8.1 million. CMS is proposing a market basket increase factor for FY 2020 of 3.0 percent. This amount is reduced further by mandates of the Affordable Care Act; that is, reductions for productivity estimated at -0.5 percent. Therefore, the proposed increase is 2.5 percent. For more details, see today’s Financial Feature.