CMSFinal Rule

Medicare Program: Inpatient Rehabilitation Facility Prospective Payment System for Federal Fiscal Year 2026 and Updates to the IRF Quality Reporting Program; Correction

HealthcareFinance & Banking

Summary

This regulation sets how much Medicare will pay inpatient rehabilitation hospitals for patient care in 2026 and makes corrections to quality reporting requirements. It affects rehabilitation facilities that treat patients recovering from strokes, spinal cord injuries, and other serious conditions, potentially influencing the cost of care and quality standards at these hospitals.

Key Points

  • 1Medicare updates payment rates to inpatient rehabilitation facilities for fiscal year 2026, which determines how much these hospitals are reimbursed for treating patients
  • 2The regulation includes a correction to the quality reporting program, which tracks how well rehabilitation hospitals perform on patient safety and care quality measures
  • 3These payment rates affect insurance costs and the financial stability of rehabilitation facilities across the country
  • 4Hospitals must continue reporting quality data to Medicare so the government can monitor patient outcomes and hold facilities accountable
  • 5The changes take effect in October 2025 for fiscal year 2026

Impact Assessment

If you are a healthcare provider operating an inpatient rehabilitation facility, this means your Medicare reimbursement rates for 2026 are set by this rule, and you must comply with updated quality reporting requirements.

Impact Level
Significant
Geographic Scope

National

Compliance Cost

Moderate

Who is Affected
Healthcare ProvidersConsumers

Key Dates

Published

December 17, 2025

Regulatory Connections

Amends CFR Sections
42 CFR Part 412
Other Documents in This Rulemaking (CMS-2025-0032)

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.