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Medicare Payment Issues Affecting Inpatient Rehabilitation Facilities (IRFs) (CRS Report for Congress)

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Release Date Revised Jan. 24, 2006
Report Number RL32640
Report Type Report
Authors Sibyl Tilson, Domestic Social Policy Division
Source Agency Congressional Research Service
Older Revisions
  • Premium   Revised May 4, 2005 (24 pages, $24.95) add
  • Premium   Dec. 23, 2004 (23 pages, $24.95) add
Summary:

Inpatient rehabilitation facilities (IRFs), either freestanding hospitals or distinctpart units of other hospitals, are exempt from Medicare's prospective payment systemused to pay short-term, acute care hospitals. The majority of the IRFs that participatein Medicare are distinct parts of other hospitals; in 2003, 971 of the 1,188 (or 82%)Medicare participating IRFs were distinct part units, the majority of which were inurban areas. In 2004, Medicare program payments to IRFs were estimated at $5.9billion, making Medicare the largest single payer for inpatient rehabilitation services.This report discusses recent developments affecting IRFs, and then turns to a moredetailed examination of issues attracting Congressional attention.