Like many other Medicare providers, inpatient rehabilitation facilities (IRFs) will soon be subject to quality reporting requirements. In addition to the usual annual updates of the IRF rates addressed in the final rule for Federal Fiscal Year 2012 published in the August 5, 2011 Federal Register, CMS is taking steps to implement a quality reporting program for IRFs, as mandated by the Affordable Care Act. CMS also is easing rules for qualifying as a new IRF and for changes in size and square footage for both IRFs and inpatient psychiatric facilities (IPFs).

IRF Annual Update

The final rule includes:

- A projected 1.8 percent increase in IRF rates (up from 1.5 percent in the proposed rule).

- A temporary increase in the FTE intern and resident cap when an IRF accepts displaced interns and residents because another IRF closes or closes a medical residency training program.

- A reduction in the labor-related share from 75.271 percent in FY 2011 to 70.199 percent in FY 2012 (down from 70.334 percent in the proposed rule).