Medicare: Overview of the IRF-PPS The Centers for Medicare and Medicaid Services (CMS) implemented a prospective payment system for inpatient rehabilitation facilities (IRF-PPS) effective January 1, 2002. Following issuance of the Proposed Rule on November 3,2000 and consideration of public comments, the Final Rule was published on August 7,2001. The IRF-PPS replaces the current ... Article
Article  |   March 01, 2002
Medicare: Overview of the IRF-PPS
Author Affiliations & Notes
  • Ellayne S. Ganzfried
    The Wartburg Adult Care Community, Mt. Vernon, NY
  • Ellayne GanzfriedColumn Editor
Article Information
Practice Management / Professional Issues & Training / Medicare
Article   |   March 01, 2002
Medicare: Overview of the IRF-PPS
SIG 11 Perspectives on Administration and Supervision, March 2002, Vol. 12, 17. doi:10.1044/aas12.1.17
SIG 11 Perspectives on Administration and Supervision, March 2002, Vol. 12, 17. doi:10.1044/aas12.1.17
The Centers for Medicare and Medicaid Services (CMS) implemented a prospective payment system for inpatient rehabilitation facilities (IRF-PPS) effective January 1, 2002. Following issuance of the Proposed Rule on November 3,2000 and consideration of public comments, the Final Rule was published on August 7,2001. The IRF-PPS replaces the current reasonable cost-based payment system. The new system utilizes information from a Patient Assessment Instrument (PAI) to classify patients into distinct groups based on clinical characteristics and expected resource needs. Separate payments are calculated for each group with additional case-level and facility-level adjustments applied. The payment is on a per stay basis, as with the acute hospital PPS system.
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