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Report: New Medicare rules hurt rehab facilities

Rehab Private Practice Alert, September 28, 2005

Medicare's new 75% rule that limits patients' access to rehab facilities is having a worse-than-expected effect on patient care, according to a report released by the Federation of American Hospitals and the American Hospital Association.

The decline so far in 2005 is equal to a 15.3% decline annually in patient discharges, with patient volume declining steadily the last four quarters.

The Centers for Medicare & Medicaid Services (CMS) believed there would be a reduced workload of 1,170 patients in 2005, but the study reported by Reuters says the number is closer to 40,000.

The 75% rule requires that rehab facilities show that 75% of its admissions are cases that fall into 13 qualifying treatment conditions to receive Medicare reimbursement.

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