Medicare updates payment rates and clinical requirements for inpatient rehabilitation facilities

The Centers for Medicare & Medicaid Services (CMS) has issued a final rule updating how much it pays inpatient rehabilitation facilities (IRFs) for the 2027 fiscal year. This includes setting new payment rates, defining patient categories used to determine costs, and finishing a three-year phaseout of a specific rural payment adjustment that started in 2025.

Why it matters: This is primarily an administrative update that sets the financial and operational rules for rehabilitation hospitals for 2027, though the new timing requirements for therapy may change how these facilities manage patient admissions.

Who it affects

• Inpatient rehabilitation facilities (IRFs)

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This rule was issued by the Centers for Medicare & Medicaid Services; readers should consult the Federal Register for full technical details before relying on these changes.

Agency: Health and Human Services Department, Centers for Medicare & Medicaid Services
Source: Federal Register — read the official document