Medicare Program; Inpatient Rehabilitation Facility Prospective Payment System for Federal Fiscal Year 2027 and Updates to the IRF Quality Reporting Program

CMS has released a proposed rule updating Medicare payment rates for inpatient rehabilitation facilities (IRFs) for fiscal year 2027, with several provisions directly affecting therapy services. Notably, the rule would require all therapy treatments or evaluations to commence within 36 hours of midnight on the admission day, and would mandate documentation of a patient's current functional status during preadmission screening. The proposal also continues the third year of phasing out the rural payment adjustment and seeks public input on potential future IRF payment reform.

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