Number: RL32640
Title: Medicare Payment Issues Affecting Inpatient Rehabilitation Facilities (IRFs)
Authors: Sibyl Tilson, Domestic Social Policy Division 
Abstract: Inpatient rehabilitation facilities (IRFs), either freestanding hospitals or distinct part units of other hospitals, are exempt from Medicare's prospective payment system used to pay short-term, acute care hospitals. The majority of the IRFs that participate in 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 in urban areas. In 2004, Medicare program payments to IRFs were estimated at $5.9 billion, making Medicare the largest single payer for inpatient rehabilitation services. This report discusses recent developments affecting IRFs, and then turns to a more detailed examination of issues attracting Congressional attention.
Pages: 27
Date: Updated January 24, 2006