The Centers for Medicare & Medicaid Services late today issued a final rule for the inpatient rehabilitation facility prospective payment system for fiscal year 2020. Net payments for IRFs will increase by 2.5% ($210 million) relative to FY 2019 payments. This increase reflects the agency’s updating of the market basket using data from 2016 as the base year instead of 2012. The rule also provides more detail about the new IRF case-mix system that takes effect on Oct. 1, as finalized in last year’s rulemaking, among other changes. CMS also modifies the IRF Quality Reporting Program and adopts new patient assessment elements, including several regarding social determinants of health.

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