Medicare Updates Inpatient Rehabilitation Payment Rates for FY 2027
New rules mandate stricter timelines for therapy initiation and interdisciplinary team meetings for inpatient rehabilitation facilities.
The Centers for Medicare & Medicaid Services updated prospective payment rates for inpatient rehabilitation facilities (IRFs) for Federal fiscal year 2027. The rule establishes the classification and weighting factors for case-mix groups and the methodologies used to compute payment rates.
Clinical requirements are tightening for facilities. All therapy evaluations or treatments must now begin within 36 hours from midnight on the day of admission. Additionally, the initial Interdisciplinary Team meeting must occur on or before four days from the date of patient admission.
Financial adjustments are also shifting. The rule finalizes the third and final year of a three-year phaseout of the rural adjustment that began in FY 2025.
Other updates include changes to the IRF Quality Reporting Program and the Durable Medical Equipment, Prosthetics, Orthotics, and Supplies (DMEPOS) Competitive Bidding Program. Specifically, bidding entities submitting under a Remote Item Delivery program now face a higher bid surety bond requirement.
These regulations take effect October 1, 2026.