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CMS Issues FY 2022 Inpatient Rehabilitation Facility Prospective Payment System Proposed Rule

For CFOs, rehabilitation leaders, compliance officers, health information managers

The Centers for Medicare & Medicaid Services (CMS) has issued its fiscal year (FY) 2022 inpatient rehabilitation facility (IRF) prospective payment system (PPS) proposed rule. Comments on the proposed rule are due by 2 p.m. (PT) on June 7.  

CMS proposes an annual payment update of 2.2%. After accounting for a proposed adjustment to the outlier threshold, CMS estimates payments to IRFs will increase by 1.8% — or approximately $160 million — compared to FY 2021.  

CMS also proposes several changes to the IRF quality reporting program and solicits input on additional policies via two requests for information (RFI): 

  • COVID-19 Vaccination Coverage among Healthcare Personnel (HCP) Measure: CMS proposes to adopt a new measure that would require IRFs to report COVID-19 HCP vaccinations in their facilities beginning with the FY 2023 IRF quality reporting program.  
  • Transfer of Health (TOH) Information to the Patient-Post Acute Care (PAC) Quality Measure: CMS proposes to revise the denominator for the TOH information to the patient-PAC quality measure to include only discharges to a private home/apartment, board and care home, assisted living, group home, or transitional living, beginning with FY 2023.  
  • Public Reporting of Quality Measures Impacted by COVID-19 Public Health Emergency (PHE) Exemptions: To account for COVID-19 PHE exceptions to IRF quality reporting program reporting requirements for Q1 and Q2 2020, CMS proposes to modify the number of quarters used for public reporting for the public display of IRF quality reporting program data.   
  • RFI on Closing the Health Equity Gap: CMS seeks comments on ways to attain health equity for all patients through policy solutions. Specifically, CMS seeks comments on the possibility of expanding measure development and the collection of other standardized patient assessment data elements that address gaps in health equity in the IRF quality reporting program.  
  • RFI on Digital Quality Measurement in Post-Acute Care Quality Reporting Programs: CMS seeks feedback on its plans to define and develop digital quality measures for the IRF quality reporting program, including the use of Fast Healthcare Interoperability Resources to support digital quality measures.  

Additional information is available in a CMS fact sheet.