CHA News Article

CMS Issues Final FFY 2016 IRF PPS Rule

The Centers for Medicare & Medicaid Services (CMS) has issued the attached inpatient rehabilitation facility prospective payment system (IRF PPS) final rule for federal fiscal year (FFY) 2016. The overall impact of the rule will be a $135 million (estimated 1.8 percent) increase in payments to IRFs over FFY 2015 levels. In addition, a substantial portion of the rule addresses revisions and updates being made to the Inpatient Rehabilitation Facilities Quality Reporting program (IRF QRP). Of paramount interest are changes in the collection of quality data under the IRF QRP and data collection requirements arising from the Improving Medicare Post-Acute Care Transformation (IMPACT) Act of 2014.

Other policy changes finalized in the rule include the adoption of an IRF-specific market basket that reflects the cost structures of only IRF providers, a one-year phase-in of the revised wage index changes and a three-year phase-out of the rural adjustment for certain IRFs. CHA is currently analyzing the final rule and will release a detailed summary in the coming weeks. Payment and policy changes will be effective Oct. 1 unless otherwise noted.