Inpatient rehabilitation facilities will receive a 3.1% increase in Medicare payments under CMS regulations effective Oct. 1. CMS rehab payments are based on a formula reflecting patients' clinical characteristics and the anticipated resources necessary to treat them. Rural facilities will receive a 19% adjustment on top of the 3.1% increase to offset higher costs and fewer cases. The CMS said aggregate payments to inpatient rehab facilities would grow an estimated 5.6% in fiscal 2005 - to $5.7 billion - compared to fiscal 2004. The new regulations don't address the so-called "75% rule," a controversial regulation that changed qualification criteria for rehabilitation hospitals and became effective July 1. Providers complain that the changes will disqualify many legitimate rehab hospitals from receiving rehab payments. -- by Tony Fong
CMS details inpatient rehab rate increases
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