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CHA DataSuite Releases FFY 2020 Inpatient Rehabilitation Facility PPS Proposed Rule Impact Analysis

For CFOs

CHA DataSuite has issued hospital-specific impact analyses of the Centers for Medicare & Medicaid Services’ federal fiscal year (FFY) 2020 Medicare inpatient rehabilitation facility (IRF) prospective payment system (PPS) proposed rule.

The reports are intended to show providers how Medicare IRF fee-for-service payments would change from FFY 2019 to FFY 2020 based on the proposed rule’s policies. A summary of the proposed rule can be found here.

Payment changes modeled in the report include the market basket update, Affordable Care Act-mandated market basket reductions, budget neutrality adjustments, wage index updates, and case-mix group updates.

Estimated FFYs 2019 and 2020 IRF PPS payments are calculated using individual IRF characteristics (cases, case-mix index, and factors to derive the rural, teaching, and low-income percentage adjustments) from the FFY 2020 IRF proposed rule Rate Setting File provided by CMS.

The standard payment conversion factors, wage indexes, and labor-related shares are from the FFY 2019 IRF final rule and the FFY 2020 IRF proposed rule as published in the Federal Register.  Wage indexes used in this analysis reflect hospital wage index values without the rural floor or reclassifications.

More information is available in the analysis description.