The Centers for Medicare and Medicaid Services (CMS) recently released the Inpatient Rehabilitation Facility (IRF PPS), for fiscal year (FY) 2022. The payment rule took effect October 1, 2021.

This year’s final rule by CMS was in line with expectations with a focus on payment rate updates and changes to quality and pay-for-performance programs.

Key takeaways the 2022 final rule has on IPFs, include:1

  • CMS projects overall IPF FY22 payments to increase by 2.1% ($80 million) over FY21 payments.
  • CMS is updating the IPF PPS rates by 2.0% (MBU of 2.7% minus a 0.7% productivity adjustment.) 
  • Updates the outlier threshold to 2.0%, which will result in a 0.1% overall increase to outlier payments.
  • New quality measure:
    • Starting in FY23, CMS will add the COVID-19 Vaccination Coverage among HCP measure to the IPF QRP.
    • Starting in FY24 payment determination and subsequent years, CMS will adopt its finalized Follow-up After Psychiatric Hospitalization (FAPH) measure to the IPF QRP.


  1. Centers for Medicare & Medicaid Services. (2021, August 2). Fact sheet fiscal Year (FY) 2022 Medicare hospital Inpatient PROSPECTIVE payment system (ipps) and long term care HOSPITAL (LTCH) Rates final rule (CMS-1752-F). CMS.
By Kindred Behavioral Health