Inpatient Rehabilitation PPS

In a broad sense, rehabilitation services are measures taken to promote optimum attainable levels of physical, cognitive, emotional, psychological, social, and economic usefulness, and thereafter to maintain the individual at the maximal functional level.

The term is used to denote services provided in inpatient and outpatient settings, ranging from comprehensive coordinated medically based programs in specialized hospital settings to therapies offered in units of hospitals, nursing facilities, or ambulatory centers. Resources found on this site mainly focus on Medicare payment and related implementation issues.

Medicare’s Inpatient Rehabilitation Facility Prospective Payment System

On August 7, 2001, the Centers for Medicare & Medicaid Services (CMS) published a prospective payment system (PPS) for Medicare Inpatient Rehabilitation Facilities (IRF) as required by the Balanced Budget Act of 1997 (BBA). The payment system that became effective on January 1, 2002, significantly changed how inpatient medical rehabilitation hospitals and units are paid under Medicare. The payment system uses a streamlined patient assessment instrument (the IRF PAI), which incorporates functional independence and case mix measures. This site provides information and resources relative to the implementation, review, and operation of primarily hospital-based medical rehabilitation services.

Visitors to this site may also be interested in learning more about the resources and services of the AHA Constituency Section for Long-Term Care and Rehabilitation. This special section of the membership comprises over 2,500 members that offer medical rehabilitation, long-term acute, skilled nursing, home health, outpatient and post-acute care.

Some of the resources within the AHA web site are designated "Members Only" and require a username and password for access. For assistance or for more information, contact the AHA at 800-424-4301.

Related Resources

Inpatient rehabilitation facilities (IRFs) have faced significant scrutiny from Congress and the Centers for Medicare & Medicaid Services (CMS)
AHA comments to provide feedback on the work that the Centers for Medicare & Medicaid Services (CMS) and the Assistant Secretary for Planning a
Advocacy Webinar Recording
Presentation slides: Inpatient Rehabilitation PPS Final Rule for 2018