tci Medicare Compliance & Reimbursement - 2003 Issue 20

Rehab: 75-PERCENT RULE ENFORCEMENT LOOMS FOR IRFs

Rehab hospitals are in line for a 3.3-percent increase in their Medicare payments - but along with the pay boost comes enforcement of a controversial rule that determines whether a hospital qualifies as an inpatient rehabilitation facility. The rate increase is a bit higher than last year's 3-percent hike, according to the proposed rule outlined in the May 16 Federal Register. The Centers for Medicare & Medicaid Services launched the prospective payment system for IRFs on Jan. 1, 2002. More ominously, CMS said May 8 that, starting with cost reporting periods beginning Sept. 30, 2003, it will re-institute...

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