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Centers for Medicare & Medicaid Services (CMS) revise criteria for inpatient rehabilitation hospitals

Case Management Weekly, May 5, 2004

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CMS announced the new criteria for reimbursement for inpatient rehabilitation facilities. An inpatient rehabilitation hospital or unit must meet the new criteria to receive reimbursement from Medicare. Known as the "75 percent" rule, the criteria will take effect July 1st.  According to the new regulation, 75 percent of patients in the facility must require intensive inpatient rehabilitation for one of 13 conditions including brain injury, stroke, and certain types of arthritis. This 75 percent rule will gradually be phased in over the course of three years. Fifty percent must have one of the medical conditions identified for cost-reporting periods beginning on or after July 1st to June 30, 2005. The next year the criteria will rise to 60 percent and 65 percent the year after that. Starting July 1, 2007, 75 percent of patients must have one of the listed medical conditions.



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