CMS issues FY 2023 proposed rule for inpatient rehabilitation facilities

The Centers for Medicare & Medicaid Services late yesterday issued a proposed rule for the inpatient rehabilitation facility prospective payment system for fiscal year 2023 that would increase payments by 2.8% ($170 million) relative to FY 2021 after a 0.4-percentage-point productivity adjustment and a 0.8-percentage-point cut for high-cost outlier payments.
 
CMS also proposes to cap wage index decreases at 5% to mitigate instability in IRF PPS payments; and seeks comments on potential changes to the IRF transfer payment policy, facility-level adjustment factors and IRF teaching status adjustment policy. 
 
In addition, CMS proposes to require IRFs to collect quality data on all patients, regardless of payer, beginning in October 2023. The agency estimates that the additional reporting burden will cost IRFs over $31 million per year (an average of nearly $29,000 per IRF). CMS does not propose any other changes to the IRF Quality Reporting Program, but it does solicit feedback on the potential future use of an electronic health record-informed quality measure as well as frameworks to address disparities in outcomes.

CMS will accept comments on the rule until 5 p.m. on May 31.